Fund Overview

Agincourt Capital will create three separate funds.

  1. Fund One: Focused on Australia with an initial size for the first round of $500M AUD (3.5BN RMB), followed by a second increase to complete the fund at $1Billion AUD (7BN RMB).
  2. Fund Two: Focused on the Chinese mainland and expected to be approximately 20BN RMB in size.
  3. Fund Three: Focused on Brazil and expected to be approximately 7-8BN RMB in size.

Australia

Agincourt Capital offers superior investment services and aims for above-market returns to investors by applying its deep knowledge of the Australian residential and commercial property markets.

Agincourt’s Australia Fund will provide investors the opportunity to invest into the very strong Australian economy, one of the few to avoid falling into recession during the recent global crisis. The demand for its resources and agricultural products, combined with its high population growths, have aided Australia’s economic success and fuelled its real estate market.

The fund will invest in only Australia’s five major capital cities: Sydney, Melbourne, Perth, Brisbane and Adelaide.

Investors will have the choice of investing into one or more special purpose vehicles (SPV’s) that each have a different expected rate of return and asset classes.

The Core SPV, which will invest into commercial offices and retail, is expected to have a return of 10%-12%. The Opportunity SPV, which will invest into residential and commercial development and opportunistic property, is targeted to return 18%-22%. The Fusion SPV will combine the strategies of the first two SPV’s and invest in core and opportunity-type real estate, with an expected return of 15%-18%.

China

Agincourt Capital’s second fund will invest into Chinese mainland real estate and is slated for launch in early 2012. The fund will invest in commercial and residential real estate, with expected returns of up to 20% p.a. Fund size will be an overall 20BN RMB, issued in two tranches of 10BN during a two-year period. It is likely that funds will be raised in a combination of direct equity and convertible RMB bonds.

China is currently the world’s second-largest economy by GDP and is expected to surpass the U.S. within the next 20 years. Combine this economic growth with the understanding that there is an incredible shift in living standards and styles in China, as recent reports show that as many as 20 million people per year are moving from rural areas to urban areas, and it is easy to see that there will be a sustained demand for real estate.

The Agincourt Capital China Fund will primarily invest in Tier 2 & Tier 3 cities, since Agincourt views the Tier 1 cities of Beijing & Shanghai as not likely to produce the returns required in the coming decades.

Brazil

Agincourt Capital’s third fund will commence in Brazil, another fast-growing commodity economy that has large deposits of coal, iron ore, and oil and gas. The country has a population of 165 million and a growing economy that is becoming more linked to China as a major trading partner. It will hold major global sporting events, including the World Cup (Soccer) and the Olympics, which have historically produced surges in economic growth on which Agincourt can capitalise as investors.

The fund, expected to resemble the size of the Australian Fund, is expected to be offered in 2012-2013. It should have two SPV’s: Core and Opportunity.