Regulated by the Monetary Authority of Singapore
(License Number: CMS101149)
Our strategies combine a focus on adding value to underperforming assets through meticulous market analysis and execution of improvement activities with active management of the investment and divestment process. The entire process is complete with investor-oriented legal and financial structuring.
Asia Hospitality Capital
Asia Hospitality Capital
Current Asset Size
US$ 50 million
Mandate
Investing in economy hotels in the Philippines. Incremental capital to be deployed for expansion of Asia Hospitality Capital’s (AHC) already existing portfolio of economy hotels in the Philippines before expanding regionally.
Investment Rationale
- The supply gap in the hospitality sector is found in the economy & mid-market hotel segments.
- Successful investments in budget hotels have historically yielded remarkable returns.
- Economy hotels are popular choices for youth and cost-conscious travelers. Both customer groups are growing rapidly over the years.
- An opportunity to expand asset mix in a real estate portfolio.
- Benefit from pent-up demand for travel that has been growing because of the COVID-19 pandemic.
- Rising interest and robust growth can be found in emerging economies.
- Potential for increased returns resulting from rapidly appreciating land prices.
- Southeast Asia has a rapidly growing tourism sector stemming from an increase in domestic and international travelers.
- Safeguard has established extensive partners and experience dealing with real estate in the region.
- An opportunity to diversify into Asia Pacific Hospitality.
At the moment, we are working on growing our already established portfolio in Philippines. We can do this by leveraging our partners’ network and expertise which gives us easy access to local off-market opportunities.
We plan to scale up to 20 regional hospitality assets with a view to a listing by 2024-25. Indonesia, Cambodia, Vietnam, Laos, and India are all markets that show promise and may be considered for real estate portfolio expansion.
SafeGuard is seeking opportunities and additional partners to build a regional, integrated economy hotel/accommodation portfolio, focusing on early-stage development or conversion of projects across Asian emerging markets.
SafeGuard Accommodation Fund
Target Fund Size
€ 250 million
Mandate
Investment in a global, high-quality portfolio of accommodation assets including student housing, social housing, private rental, co-living, and service apartments.
Investment Rationale
- Directly tackles the housing shortage in key cities where home building activity has lagged behind population moves and behavioural changes. These moves and changes stem from a rapid increase in economic activities in select areas and has resulted in unsatisfied demand.
- Acts as a hedge against inflation.
- Opportunities for investments in distressed situations.
- Governments acknowledge the extent of the housing shortage, but policy efforts to address the issue are implemented slowly.
- The COVID-19 crisis has made the situation worse as construction slowed, further constraining the supply of accommodation assets.
The situation is particularly affecting students, young professionals and families, and popula
Partnering strong operators and utilizing local teams, the Fund will adopt clearly defined strategies that create value by investing in opportunistic / value-add situations, greenfield developments, and redevelopment via conversion opportunities wherever there is a change in demand.
The Fund will develop and manage a portfolio of accommodation assets. Investors will benefit from our deep experience in the sector and the scale economies that larger portfolios enjoy.
SafeGuard Accommodation Fund
Student Accommodation in the UK
Student Accommodation in the UK
Current Asset Size
£ 40 million
Mandate
To invest in a fully occupied and operational, 407-bed Student Accommodation in Belfast, United Kingdom,
Investment Rationale
- Mainstream, highly investable real estate asset; Commodity like assets with sustainable and predictable revenues/cost/returns.
- Most defensive real estate asset class as it has low correlation to the traditional real estate asset sectors and thus provides good property portfolio diversification.
- Performs well in all economic conditions including recessions.
- Surge of global middle class and mobile students seeking quality education.
- Low levels of supply in selected cities; UK degrees remain highly popular.
- Belfast’s knowledge economy is creating economically attractive opportunities. It is a world leader in cybersecurity and the No.1 destination globally for Financial Technology Investments.
- Significant mismatch between supply and demand ensures a low level of competition and therefore sustainable returns: 100,000 students in Belfast have currently 4,000 beds of purpose-built student accommodation available and only another 5,500 beds approved and in the pipeline.
- Low land acquisition cost ensures higher profitability than in other U.K. cities, higher yields, lower risk, and a significant opportunity to realize capital gains.
- One of the fastest growing cities in Europe, where young people up to the age of 21, make up a third of our population.
- The asset is in the midst of finalising a nomination agreement which will secure its future rent with a University for the next couple of years.
- Adjacent to the current site, there is a small site that allows for the construction of an additional 94 beds. Planning Permission has been approved for this.
- Further to our success in the first site and a chronic lack of Purpose-Built Student Accommodation beds in the area, we believe that a strategy of scaling and cornering the market makes sense for a city like Belfast.
- Leveraging off the relationships we have cultivated with the University, financiers, our operating and building partners, we have identified a pipeline of opportunities where we can easily replicate our operating model and scale up to 2,000-3,000 beds in the city, thereby positioning us as a market leader and accomplish economies of scale with our contractors, and the University.
Click here to contact us
Safeguard Platinum Real Estate Fund
Asset Size:
€ 50 million
Mandate
Investment in high quality, mispriced, and undervalued commercial and residential properties in the prime locations of Spain.
Investment Rationale
- The growing number of visitors to Spain has driven the demand for hotels and accommodation in the country.
- With a wide network of contacts in the industry, we are able to leverage on their expertise through partnerships to give our developments an edge over the rest.
- Spain’s economy has a record of outperforming its European counterparts.
- New and resale properties in Spain have been enjoying significant year-on-year increases to its prices.
- Spain is one of the world’s most visited countries— second only to France. This drives tourist spending to record highs pre-pandemic.
The investment strategy is focused on prime locations, acquiring properties at below-market prices, and adding value through our team of conversion experts.
Safeguard Platinum Real Estate Fund
SafeGuard Pashouses Real Estate Fund
SafeGuard Pashouses Real Estate Fund
Asset Size:
US$30 million
Mandate
To invest into SafeGuard’s latest real estate fund in exclusive partnership with PASHOUSES, the leading, innovative marketplace for residential real estate in Indonesia.
Investment Rationale
- The fund targets Indonesia’s large residential real estate market with residential transaction volume of US$20 billion per annum, of which US$6 billion is transacted in Jakarta alone
- PASHOUSES together with SafeGuard looks to capitalize on the lack of housing data and opaque real estate transaction process while offering a risk adjusted and diversified investment opportunity in a high barrier to entry market
- Utilizing PASHOUSES proven technology and analytics, the fund acquires mispriced residential real estate assets, implements short-term value-add strategies and sells the assets in the open market via internal sales channels
- Indonesia has one of the largest population in South East Asia – 273 million and Jakarta alone has 11 million and greater Jakarta at 31 million.
- Indonesia has US$20billion worth of residential transactions taking place every year with the Jakarta region alone standing at US$6billion.
- The home ownership rates are around 70% in the target markets of Tangerang, Bogor, Bekasi and Depok.
- Acquisition target will focus on landed residential houses in Greater Jakarta (Tangerang, Bogor, Depok, Bekasi)
- Purchase only landed homes with an average acquisition price of US$50,000 per house.
- Target holding period of 3 to 9 months inclusive of light renovation, repairs and staging.
Click here to contact us
