Our Debt Investments
HGC Credit is focused on providing flexible capital solutions to the real estate sector. Its investments cover the full
spectrum of debts from senior loan, mezzanines debts and EB5 finance for all types of real estate transactions.
From 2010, our executives arranged over 30 transactions involving capital deployment of
over US$ 3 billion.
The solutions we offer are not often available elsewhere in the credit markets. Our breadth is our
competitive advantage – drawing upon a wide range of disciplines, including our deep experience in EB5 finance,
structured credit, mezzanine lending and in some circumstances low cost senior loan finance with the aid of redeployment EB5 capital.
We seek to maximize the overall project return by providing capital when
other funding is unavailable or where our expertise and scale enable
uniquely flexible capital solutions.
Our strategies for senior loans concentrate on the senior secured debt of issuers in major cities across the U.S. We strive to attain a desirable total return while protecting principal and shunning defaults. These strategies gain from our concentration on detailed, bottom-up credit analysis, as well as our profound experience and knowledge.
A typical transaction is HGC’s $62 million loan participation for a land plot on Sunset Boulevard, located in West Hollywood on the iconic Sunset Strip, with a US bank coinvesting in the loan. Currently serving as a retail strip center, the property is going through re-entitlement and will transition into a mixed-use development, including a re-designed venue for recording studio, multiple eateries, cafes, retail spaces, a five-star hotel and condominiums.
Our mezzanine loan investment strategies involve providing debt financing to a real estate development project in exchange for a higher rate of return than traditional senior mortgage financing. Such loans are typically used to finance a portion of the total project cost and are typically subordinate to senior debt.
An example of HGC’s loan participation to development project is its mezzanine loan financing to a development project of 65‐home luxury hillside gated community development in San Dimas, California. The location provides spectacular views of the San Gabriel Mountains and the city directly below. It is the largest gated community in San Gabriel Valley region of Los Angeles to come to market in more than 10 years. HGC also active in financing of multifamily development projects in California, Texas and Massachusetts where HGC can be flexible in both mezzanine and senior positions.
Our debt investment strategy for stabilized multifamily projects typically involves the investor obtaining a long-term loan with a fixed interest rate to provide the necessary funds for the purchase of the property or refinance the existing loan on a property that is in operation.
A good example of this type of transaction is HGC’s collaboration with a U.S. bank to provide a $86 million first mortgage loan to a five-star hotel developed by a renowned Texas developer. The hotel opened in 2019, is a 22-story, 354-key hotel in the thriving Texas Medical Center (“TMC”) of Houston, Texas. The TMC is the largest medical complex in the world, with over 50 million square feet across 290 buildings, 21 hospitals, and 1,345 acres. It is also home to Texas Children’s Hospital, the world’s largest children’s hospital, and MD Anderson Cancer Center, the world’s largest cancer hospital.
© 2018-2023. HGC Investment Management Limited. All rights reserved.
Terms and Conditions
|
Privacy Policy
|
Disclosures
Back To Top 
