A consortium chaired by former KPMG head Ron Bolger has unveiled plans to raise up to €30 million in Ireland for property investments in Singapore.
Fine Grain says it will target assets overlooked by international investors and concentrate on properties suitable for redevelopment or refurbishment in the Asian city-state.
Fine Grain's backers include Mr Bolger, who is Singapore's honorary consul-general to Ireland, and veteran Singaporean property adviser Wan Fook Kong, former senior partner with Jones Lang LaSalle and Colliers.
Two Dublin brothers are fronting Fine Grain. Former HSBC banker Colin MacDonald will manage acquisitions in Singapore, where he lives and leads the local Irish business group. Accountant Alastair MacDonald, co-founder of MKO Partners, manages Fine Grain in Dublin.
They aim to use local contacts in Singapore to source off-market transactions from vendors in areas with good growth potential and to make use of expertise in government planning.
The €30 million equity they are hoping to raise from Irish investors converts as S$63.34 million (Singapore dollars). By raising debt on the equity, they hope to buy three to six buildings priced at S$20-S$100 million.
Fine Grain hopes to add value to its assets by optimising and adding space, managing the tenant mix, carrying out design-led upgrades and seeking new revenue streams.
Colin MacDonald expects that the annual internal rate of return on the investment will be in excess of 18 per cent. The investment term will be five to seven years. Investors will receive a share and loan note in a private limited company. The group will make use of a holding company in Cyprus for tax reasons. The minimum investment is €500,000.
