Mainboard-listed Thakral Corporation has set a new strategy for its real estate business and said it will partner with developers as a financial investor.
In a filing to the Singapore Exchange, the firm said that as a capital investor, it is looking to invest in affordable mid-sized residential developments located within inner cities in Australia and the Asia Pacific.
Thakral said the new strategy will provide a sustainable second revenue stream for the company.
“We are now investing in substantially de-risked projects which have already secured pre-sales of their units and projects which have received development approval. This means that these projects have genuine value,” said Jaginder Singh Pasricha, managing director for Real Estate and Corporate, Thakral Corporation Ltd.
The firm is targeting returns of between 15 and 25 per cent, with an exit strategy in 12 to 36 months.
“We will receive our returns and capital when the projects are completed and all units already pre-sold to buyers are settled,” added Mr Singh.
Thakral said it will initially tap the Australian market and then expand to China, India and other parts of Asia.
Thakral has proposed the formation of a joint venture company that will oversee the upcoming investments under the new strategy.
This joint venture will be 51 per cent owned by Thakral and will be set up in the first quarter of next year.
It will be headed by Mr Singh together with four investment bankers.
Thakral currently has commercial and residential property holdings in China and Hong Kong.
It also has a 55 per cent stake in commercial and retail developer Wujiang Dafa Real Estate Development and a 3.5 per cent equities investment in Thakral Holdings in Australia.
Apart from real estate, Thakral also distributes consumer electronic products in China, Japan, India and Singapore.
Source : Channel NewsAsia – 14 Dec 2010