NOON Capital, a Southeast Asia-based property investment platform, has announced plans to establish strategic real estate investments in tier-two Southeast Asia cities.
Its first two properties have an accumulated value of US$20 million. One has been completed and is fully operational, while the second is due for completion in 2019. NOON Capital is also shifting the financing and management of new investments onto blockchain – making it the first real estate developer in Southeast Asia to build, manage and drive individual and institutional investment through blockchain technology.
NOON Capital’s investment mantra is to focus on tier two Southeast Asian cities, where there is more room for bringing market efficiencies, lower barriers to entry and more room for growth and value creation for shareholders.
“Thailand has a stable currency, low inflation, a strong banking system, and is embracing blockchain technology. It has great infrastructure for both our investors and tenants,” said Luca Dotti, Managing Partner of NOON Capital. “This makes rapidly developing cities such as Phuket an attractive proposition, because it has the safety and structure of a developed country, while also having immense real estate potential for investment and development.”
According to The World Bank, Thailand has moved from a low-income country to an upper-income country in less than a generation. The country has articulated its long-term economic goals in its 20-Year National Strategy (2017 – 2036) focused on growth of Tier 2 cities, including Phuket and Chiang Mai. These cities are particularly interesting for the country’s rapidly growing middle-class.
The domestic disposable income is growing at 5 per cent a year, and the strong demographics is likely to foster further urbanization dynamics and wage increases. With its increased spending power, Thailand’s middle-class is looking towards convenient, pricier housing solutions that still offer value for money.
A Track Record in Innovation
Claudia Zeisberger Academic Director of INSEAD Global Private Equity Initiative, has also joined NOON Capital’s advisory board to support its business expansion with her vast experience in private equity, and her insights around blockchain developments. This follows other senior appointments at NOON Capital as it builds its portfolio and grows from strength to strength.
NOON Capital’s Tower Phase I was the first project completed in December 2016, featuring a 74-unit condominium tower located at the heart of Chalong, the main residential district of Phuket. In its first ten months, it has reached an impressive 90 per cent occupancy rate.
Following this, the company is also venturing into the development of Spazio NOON, a network of co-living spaces in Thailand which won the Patrick Turner Award at the INSEAD Venture Capital Competition – awarded to projects with large potential social impact. The construction of its first outpost in Phuket is due to commence in the second part of the year.
By integrating blockchain technology into its investment processes and housing upkeep, NOON Capital is aiming to secure funding from investors through digital certificates backed by its project. The interconnectivity of these applications onto the same blockchain (Ethereum) creates a seamless, efficient and transparent investment process.
It also provides quick updates, such as distributing a small dividend to investors in real-time every time NOON Capital receives a monthly rental payment. For housing purposes, tenants can also use digital wallets to pay regular monthly bills such as basic utilities and rental.