The investment strategies of the fund will include asset-backed direct lending, non-performing debt acquisition, acquisition financing, stretch senior financing, project financing, bridge financing and other debt related strategies.
As part of this strategic partnership, the two parties will participate in a series of overseas investor roadshows, with Taiwan as their first stop. Through the roadshows, the two parties will introduce the fund's investment strategy and uniqueness to potential investors to attract more participants. The expected fund size will be up to US$300 million.
As the first listed Pawnshop group in Hong Kong, Oi Wah has nearly 50 years of industry experience and is a market leader in providing pawn loans and mortgage secured loans to customers. The natural synergies that Oi Wah can create with partnering up with PACM Group – a real estate private credit investment management firm with extensive international investment experience and professional knowledge – are apparent and will enable both parties to consolidate the market landscape and become the new leader in the real estate private credit investment sector.
According to the MOU, one of the potential cooperation models between both parties is to jointly establish a limited partnership fund with Oi Wah acting as the cornerstone investor by providing initial capital for the fund; and a company to be jointly established by both parties to act as the general partner of the fund, the specific content of the cooperation model will be set out in a formal agreement to be entered into between both parties.
Mr. Edward Chan, Chairman and CEO of Oi Wah, said, "As the global economy continues to grow, real estate private credit investing has emerged as a fast-expanding market. Our cooperation with PACM Group will help tap into this market's potential and enhance both companies' competitiveness internationally. We look forward to opening a new chapter for both companies in the global market and achieving better joint development.
Taiwan is an economically advanced region with a favourable investment environment and a broad investor base. The financial market and regulatory framework are also very stable. We hope to attract more Taiwanese investors to participate through roadshows in Taiwan, thereby providing a properly risk adjusted alternative investment solution in the region."
Mr. Francis Ng, Managing Director and Chief Investment Officer of PACM Group, said, "We are privileged to launch a real estate private credit fund with Oi Wah. This is the second fund under the PACM Group. We believe that with the professional experience of both parties in the private credit fund and lending industries, the fund will successfully capture the market recovery opportunities and bring a properly risk adjusted returns product to investors. We target to achieve double-digit returns, with the fund investing in private debt instruments that is secured by real estates assets located in developed markets. Taiwan Investors have always been interested in fixed income commodities and real estate markets, and we have seen an enthusiastic response to the fund during our initial conversations with Taiwanese investors. We look forward to communicating with more investors in the future."
The issuer is solely responsible for the content of this announcement.
Oi Wah Pawnshop Credit Holdings Limited
Oi Wah is a financing service provider in Hong Kong, mainly providing short-term secured financing, including pawn loans and mortgage loans. The Group established its first pawnshop in 1975 and currently owns 10 pawnshops in various locations in Hong Kong. Oi Wah diversified into mortgage loan business in 2009. The Group is the first local pawn shop which successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited on 12 March 2013.
PACM Group (Holdings) Limited
PACM Group (Holdings) Limited ("PACM Group") is a real estate private credit investment management firm based in Hong Kong specializing in distressed investments / special situations in developed markets with projects in Hong Kong, Australia, the United Kingdom , and Canada. Pacific Aegis Capital Management (IM) Limited is a HKSFC regulated entity with a Type 9 Asset Management license.
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