Fund Structure: Cayman Island Segregated Portfolio SP1

After the tragic fire at one of the self-storage facilities (run by SC Storage) in 2016, the Hong Kong government has issued clearer and stricter rules for compliance by the operators. Most of the existing operators have not yet achieved full compliance with their existing portfolio. Given their existing tenancies with non-compliance issues which are practically irremediable, they are being forced by their landlords to close their self-storage operations. This creates huge opportunities for new self-storage operators.

Since the new rules were issued, the Manager’s team has successfully established two self-storage operations (with full compliance) in 19 locations under two brands in Hong Kong with an aggregate floor area of around 250,000 sq ft. 

This themed fund focus on investing into industrial properties for conversion into self- storage. In some cases, we may consider via signing of long leases. Thus, a combination of asset heavy and asset light strategies would be deployed. We expect that a minimum of 70% of Net Asset Value of our portfolio will be self-owned properties.