Singapore Private Equity Fund

September 15, 2021

Singapore Private Equity Fund...

We are now working with a Singapore Private Equity Fund that is focused upon the following sectors:

- PBSA

- PRS

- Co Living

- Senior Living.

They are already investing in the U.K and currently operate PBSA projects in:

- Edinburgh (274 beds)

- Sheffield (284 beds)

- Nottingham (300 beds).

Their ideal project size is:

- PBSA 300 to 500 beds

- PRS 200 to 300 units.

They like to deploy capital early on in the project life-cycle and they are not averse to taking planning risk. Therefore their capital is involved at the following stages:

- Land Purchase

- Planning

- Build Out

- Retain for 2 to 3 years to stabilise the asset

- Sell On.

The fund will deploy their capital day 1 to purchase the land etc and then arrange senior debt for the construction funding.

They prefer to work with joint venture partners who are experienced developers or contractor/developers. They are looking to build relationships with new partners on the basis that several projects can be built out over the next 3 to 5 years. As already stated, the fund prefers to maximise the project yield by retaining the asset for 2 to 3 years during which time the asset will stabilise before selling on into the institutional market. If the fund's joint venture partner wishes to be bought out after 2 years e.g on project completion, then this is also possible.

In turning to the level of investment into a joint venture partnership, please note:

- For the first project with a new joint venture partner, the fund would want the partner to invest 25% of project costs as a minimum contribution.

- Once the relationship is established, the fund is happy to invest up to 90% of all costs and the joint venture partner invests only 10% of project costs.

With respect to return on capital, the fund is looking for an I.R.R of 18% over a 2 to 3 year period.

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