CR Global Social Housing Fund, in its second series, will continue to invest in a portfolio of UK social housing to achieve social impact
SDAX lists private real estate fund to drive social impact in the UK with social housing
The second series of the GBP 200M fund will be tokenized and be made available for trading on SDAX's platform at the end of its fund-raising round, where the first series is being listed.
Raymond Poh, CEO of SDAX & Dr Paul Inthaseni, President & CEO of Century R Pte Ltd
A report from the UK government in December 2021 highlights that 8.5 million people in England are facing some form of unmet housing need, with approximately 1.6 million households in urgent need of socially rented housing. Overcrowding is also the largest problem in this statistic, with almost 2 million children living in such households. With the purpose of driving social impact in the UK, the fund will be channeling the investments towards real estate supporting the cause of meeting these social housing needs, with payments guaranteed by the local housing associations.
CR Global UK Social Housing Fund II is structured as a sub-fund of CR Global Investments Variable Capital Company as the investment vehicle. Introduced by the MAS, the VCC is a new corporate structure for investment funds that provides greater flexibility and improved operational and tax efficiency, thereby facilitating investment fund operations and addressing global investment funds' needs. CR Global Investments VCC works with a multitude of institutional stakeholders ranging from multi-family offices, asset management companies, securities companies, corporate clients, listed companies, and pension funds to banks.
The first series of the CR Global UK Social Housing Fund was closed for subscription and has been listed on SDAX Exchange since July 2022 for trading. The second series of the fund will continue to focus on investing in UK social housing to serve urgent social needs. Adopting a core-plus strategy with capital preservation through an asset-backed structure, the fund has an investment tenure of two-plus-two years, providing up to 7% per annum coupons with the potential for capital appreciation up to 7% upon exit.
SDAX partners with CR Global Investments VCC to raise funds in a fast, secure, and cost-effective way through blockchain technology, tokenizing the fund and making the investment accessible to investors through fractionalization. With the partnership and the technology of tokenization, investors from both the first and second series of the fund are able to trade their tokens on SDAX's trading platform. Fractionalisation allows investors to access this investment from GBP 50,000.
"Our partnership with SDAX helps to bring this investment opportunity to more investors in the market. The fund will address a social need and we believe in making a difference for those in need of it most in the UK. With the VCC, the economies of scale achieved will help in cost efficiencies and bridge capital channels to the UK," said Dr. Paul Inthaseni, President & CEO of Century R Pte Ltd and cornerstone investor of the fund.
The fund is managed by an experienced team of real estate professionals and holds strong ESG credentials, including being a signatory of the Principles for Responsible Investment (PRI), the world's leading proponent of responsible investment. The fund had also undergone SDAX's proprietary ESG assessment framework to ensure the fund's adherence to internationally recognized ESG standards for driving social impact.
"We are excited to be partnering with CR Global Investments VCC in this investment that drives tangible social impact and brings this opportunity to our investors. With the increasing scrutiny of ESG investments in recent months, it becomes more of a necessity to exercise rigorous financial stewardship. Our ESG investments serve as a pillar of what we stand for at SDAX, and this is an excellent opportunity for us to further a social cause with rigor. We hope to work with more partners such as CR Global Investments VCC to finance towards more social causes, as well as initiatives towards net-zero (FTT)," said Raymond Poh, Chief Executive Officer, SDAX.
SDAX is a MAS-regulated investment and trading platform serving institutional, accredited, and retail investors. We provide access to uniquely curated assets that until now have not been available to most investors, through asset tokenization. Our strength lies in real estate, ESG, and impactful investment opportunities. SDAX partners with corporate and institutions to raise capital more efficiently to support their growth and expansion.
In everything that we do, we commit our energy, technology, and expertise to unlocking innovative investment opportunities that drive sustainable, impactful growth.
SDAX represents the merged entities of digital asset exchange Digiassets Exchange Singapore (SDAX) and fintech company Minterest Holdings. The merger and rebranding bring synergy for SDAX by combining capabilities to offer both a Digital Asset Exchange, regulated under its Recognized Market Operator (RMO) license and Capital Markets Services, regulated under its Capital Markets Services (CMS) license.