Real Estate Investment Management
Real Estate Investment Management
Maximus Real Estate Group is forming a platform and various funds to acquire, develop and sell or operate non-domestic (focusing on hotel and commercial) projects in Hong Kong, targeting c. HK$500M fund size each with asset value of >HK$1,000M, and expected exit val >HK$1,500M.
Maximus Real Estate Investment Management Limited (“Maximus”) is the investment and funds’ management platform of Maximus Real Estate Group, with a track record of developing commercial projects in Hong Kong.
Opportunity to invest along side Maximus (“GP” or “Manager”) into the Hong Kong hotel and commercial market, that is positioned to benefit from the limited supply of new offices and mass market hotels located in core business and tourist attraction areas, with a growing demand from visitors as a result of growth in the Greater Bay area and a strong rebound in Hong Kong’s retail and tourism industry.
Compelling market dynamics and strong positioning of Maximus
The Manager is in the process of capital raising, targeting aggregate equity commitments of HK$500M for each fund. Our typical fund targets for the following specifications:
- The 4 year levered project level return is targeted at 17 -20% gross IRR1
- The LPs will be entitled to a preference return
- A typical non-domestic project would have a site size of approx. 2000 – 5000 sqft, and plot ratio of 12 times (depending on OZP guidelines), located in core urban areas of HKSAR
- Anchor LPs may have a first right to purchase asset(s) upon completion of the project development, subject to further discussions with the GP
- A pipeline of development/ value-add opportunities for each fund has been identified
Invest into a fund that is managed by a leading boutique Hong Kong development fund which focus’ on off-market hotel and commercial projects in Hong Kong
Experienced in development
- The Founder has over 13 years track record in Hong Kong real estate development and operations
- Fund I has returned strong results for its investors, with a project IRR of >38%
- Management team has deep real estate development and management experiences in Hong Kong
Attractive market opportunity
- Undersupply of office space and mass market hotel land plots in core urban areas in the long term
- Growing demand from tourists from China as a result of the opening up of the Highspeed rail and the HK-Macau-Zhuhai bridge
- Favourable macro environment arising from the Greater Bay area
Focused, off-market strategy
- Strategy to focus on the development and operations in the office and boutique hotel market in Hong Kong
- Projects are typically off-market transactions, leveraging resources from the GP
Attractive projects and access to future pipeline
- An attractive initial project located in prime locations in Kowloon
- Strong commercial pipeline located in core areas of Kowloon and Hong Kong Island
Attractive returns and alignment of interests
- Target 4 year equity IRR >17% – 20% p.a. (pre-fees1)
- The Manager will co-invest at least 5-10% of total equity
Mr. Howard Chao is the Founder and Managing Director of Maximus Real Estate Investment Management Limited and Maximus Engineering Limited. He has over 13 years’ experience in the field of property development, project management, construction engineering and design, marketing, and property investments.
Mr. Chao was appointed as the Executive Director of Cheuk Nang Holdings (“CNH”) (Hong Kong exchange listed: 131) from 2006 to 2014. He is currently appointed as a Non-Executive Director of the CNH since 2014. During his time at CNH, Mr. Chao managed the investment properties of the CNH group, which comprised of a mix of commercial and residential assets located in Wanchai, the Peak, and South Bay, with a total asset value exceeding HK$5 billion. Mr. Chao was also in charge of managing the residential development projects in Shenzhen and Hangzhou, PRC. With extensive involvement from the land acquisition phase to the structural engineering design and completion, Mr. Chao has delivered over 2.5 million sqm completed GFA, with a total asset value of RMB 6 billion.
During the period of 2017 to 2018, Mr. Chao’s first Real Estate Fund, which invested in a value-add opportunity named Regent’s Park in Kowloon East, was completed and delivered strong returns to the investors.
Mr. Chao holds degrees of Master of Science in Real Estate, and the Bachelor of Arts in Business Management; Certificate of Completion of Real Estate Sustainability, awarded by the University of Cambridge – Institute for Sustainability Leadership.
Mr. Chao is a Committee Member of the Hong Kong Chinese Chamber General Commerce, and a member of the Chinese People’s Political Consultative Conference of Chongqing.
Mr. Christopher Young is a member of the Fund’s Advisory Committee
He is also the Chief Executive Officer and Director of Young Capital Advisory Limited since 2016. He has 10 years’ experience in real estate funds management, auditing and accounting, corporate finance, property investments, and real estate deals origination in Hong Kong, the PRC, and Australia.
Prior to Mr. Young’s current roles, he was in funds management at Logos Property Group in Shanghai from 2015 to 2016. He worked for Deloitte China in Hong Kong in auditing from 2009 to 2015, covering Hong Kong listed property developers and multinational clients.
Mr. Young is a qualified member of the Hong Kong Institute of Certified Public Accountants since 2012. He holds a Master of Science in Finance degree from the University of Michigan, and a Bachelor of Applied Science in Chemical Engineering degree from the University of British Columbia.
Mr. Ian Ip has practised as a Barrister-at-Law for approx. 5 years primarily involved in civil litigations. He is currently non-practising in pursuit of various business startups. As an entrepreneur, he has successfully built businesses ranging from online premium food retail brand and restaurants such as lá bò lá, where he earned his first Michelin-recommendation in 2017, the first year of his restaurant start-up.
Mr Ip has also served as a management consultant at McKinsey & Co. from 2012 to 2014, where he conducted in-depth sectorial and geographical analysis in the real estate sectors in Hong Kong and Mainland China.
Mr Ip received his Bachelor of Arts with Honours in Economics from the University of Cambridge, Masters of Arts (Cantab) from the University of Cambridge, a Graduate Diploma in Law (Distinction) from the College of Law (London), and the Postgraduate Certificate in Laws from the University of Hong Kong.