CapitaLand Investment weighs rescue capital for Hong Kong firms

[SINGAPORE] CapitaLand Investment is considering providing rescue capital to listed Hong Kong companies as they would likely be among the first to benefit if the troubled property market recovers, according to an executive.

Not as much capital is going into Hong Kong and China, and that provides opportunities for investors willing to take calculated risks, Gabriel Fong, head of the special opportunities group at the real estate investment manager, said at the Turnaround Management Association APAC regional conference in Singapore on Thursday (Aug 21).

He said a way to capture those opportunities would be through offering “rescue capital” to listed companies in Hong Kong, as such firms would be among the first to benefit from any ratings changes.

Chief executive officer Lee Chee Koon said in an earnings briefing last week the firm sees “interesting” assets in Hong Kong’s market including student accommodation, data centres as well as offices that can be repositioned into hospitality products.

The Singapore-based firm, which is backed by state investor Temasek Holdings, has also engaged with cash-strapped developer New World Development for exploratory discussions in recent weeks, people familiar said this month. BLOOMBERG