Strategic Funds Targeting Distressed Homes In Singapore
Joining the likes of private-equity funds by Blackstone and SC Capital Partners, SiS Asset Management (SiSAM), a unit of Hong Kong-listed SiS International has set up a maiden fund to target distressed residential assets in Singapore, swooping in on undervalued or distressed homes a softening property market here.
The fund known as the SiS Real Estate Opportunity Fund will not only explore other residential, commercial and hospitality assets in Singapore but also in other key Asian markets such as Japan and Hong Kong. In Singapore, due to loan curbs, the commercial property sector has also suffered.
The plan is to buy and spruce up these properties, reposition their tenant mixes and then exit them at a profit, or reinvest that capital into other properties, or return capital early to investors, before the five-year deadline to avoid seller stamp duties. stamp duties.
Unlike other typical real estate private equity funds, this platform has a much more conservative assets under management target of S$50 million. It comes with a five-year term plus two additional one-year extensions.
It is targeting individual accredited investors by offering them smaller minimum subscription denominations of S$200,000 each.