Bridge Capital Management Co., Ltd. ("Bridge Capital") is proud to introduce Thailand's first-ever Secured Private Credit business featuring Investment Participation as a unique real estate-backed investment product. As a lender and intermediary, Bridge Capital will invest its capital alongside individual investors who seek attractive risk-adjusted returns in loans secured by real estate collateral of business owners with short-term liquidity and working capital needs. By leveraging the deep networks, experience, and expertise of its founding shareholders, Bridge Capital aims to grow its loan portfolio to THB 250 million in its first year of operation. The Company's founding members include recognized leaders within the real estate and financial sectors, such as Capstone Asset Co., Ltd., a prominent real estate developer, and Capital Link Credit Foncier Co., Ltd., Thailand's leading financial service provider. Additionally, Mr. William Ellwood Heinecke, the founder of Minor International PCL, will join as a strategic investor.
Mr. Titiwat Kuvijitsuwan, Managing Director of Bridge Capital Management Co., Ltd. commented: "Drawing on our decades of real estate and financial management experience, we identified an opportunity to create a reliable and transparent institutional business to facilitate private credit transactions backed by high-quality real estate in Thailand. In recent years, owners of small and medium enterprises (SMEs) have faced various challenges in securing loans from traditional financial institutions despite their willingness to pledge real estate as collateral. As a result, owners often turn to loans with non-standard and highly inflated interest rates as a last resort. Our solution is to create tailored investment products with favorable economics in exchange for capital from yield-seeking investors to finance these loans. Bridge Capital's new Secured Private Credit business will offer loans between THB 10-50 million at an interest rate not exceeding the maximum legal limit of 15% per annum. The loans will have a repayment period within 1-2 years and will be secured by high-quality real estate collateral in prime locations, including vacant lands, commercial buildings, townhomes, and condominiums, at a loan-to-value ratio of up to 50% of the collateral value.
Approved loans for qualified borrowers will be financed partly by Bridge Capital's own paid-up capital and partly by qualified investors through a bilateral legal contract known as an Investment Participation Agreement. Investors can expect to receive an attractive fixed return rate of 5-8% per annum with a 1-5 years investment duration. Approximately 70% of Bridge Capital's investor base is expected to consist of individuals with investable assets of THB 5 million or higher with the remaining 30% from high-net worth individuals whose accounts are managed by financial institutions".
"Bridge Capital's name is inspired by our desire to bridge the gap between yield-seeking investors and loan-seeking real estate business owners. Our objective is to empower real estate business owners with superior access to capital, fostering economic growth for SMEs in Thailand. Bridge Capital's competitive edge lies in our experience in appraising collateral and disbursing loans, which is supported by a robust corporate governance framework and rigorous due diligence process. A collaboration with Capital Link Credit Foncier, a renowned financial institution specializing in the credit foncier business, enables us to broaden our reach to serve more real estate business owners by capitalizing on their origination and structuring expertise. As part of our commitment to fairness, transparency, and accountability, all essential documentation will be prepared by an accredited law firm. Looking ahead, we plan to improve our product and service offerings in response to an expected rise in demand over the next 2-3 years. This includes adopting blockchain technology to increase security and transparency of our contract management protocol, as well as to streamline efficiencies in our business operations. We plan to capture 3-5% market share of the total private debt market, valued at approximately THB 9 billion", Mr. Titiwat added.
Bridge Capital has commenced operations since the beginning of 2023. To date, Bridge Capital has loaned a total amount of THB 40 million and is positioned to grow its loan portfolio to THB 250 million by the end of 2024.
Company information: Bridge Capital Management Co., Ltd. was co-founded by members of Capstone Asset Co., Ltd., a real estate developer and investor in residential, commercial and hospitality projects with a combined project value of over THB 13,600 million and includes projects such as Tonson One Residence, Kimpton Kitalay Samui (managed by Intercontinental Hotel Group), Canvas Ploenchit and the Quarter Collection, together with Capital Link Credit Foncier Co., Ltd., a leading financial service provider under Capital Link Financial Group, who offers deposit services for the public and secured lending services from mortgages, real estate brokerage and leasing, and Thailand's largest credit foncier with over 50 years of experience. In addition, Mr. William Ellwood Heinecke, the founder of Minor International PCL, is also a strategic investor through his family office, Minor BKH Limited. For any inquiries, please visit the official website at https://bridgecap-group.com.