Friday, March 9, 2012

Property funds rushing for exit in Indochina

Business Times: Fri, Mar 09
(SINGAPORE) A rash of real estate investment funds are trying to exit Indochina after having been burned by the market's current weakness, said an executive of a new fund that wants to buy up their assets.


'There's a lot of funds sitting in Indochina now which raised capital in the early 2000s,' said Oliver Smith, chief investment officer of Trinity Investment Partners, LP, at a news conference yesterday.


'Generally they have five- to seven-year fund lives, so right now they're coming to the end of their fund life. Their GPs (general partners) are putting up notices for extension, but unfortunately given the way that their NAVs have moved, a lot of their investors are unwilling to extend the life of those funds.'


But extracting assets out of countries like Vietnam and Cambodia can be complex and time-consuming. Trinity, which is hoping to raise US$30 million (S$37.5 million), plans to buy those assets on the cheap from owners who cannot or do not want to deal with that complexity, eventually unwind them over a period of three to five years for a profit...

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