KBank Private Banking has announced the success of its off-market real estate fund, investing in the globally trending housing sector under the HOMA brand. This was achieved through the United Private Equity Fund 1 (UPREQ1-UI), in collaboration with UOB Asset Management (Thailand) Co., Ltd. (UOBAM) and HOMA. After its initial offering, the fund successfully raised over 1.2 billion baht within just one week, and continues to recommend alternative assets, particularly off-market assets, as they believe that the prices and returns of these assets will remain unaffected despite ongoing market volatility.

Dr. Tripol Poomwatsana, Senior Managing Director, Private Banking Business Head, Private Banking Group at KBank stated that investors in the capital market are currently facing challenges due to economic uncertainties, causing asset prices across nearly all types to experience volatility. Investors are therefore seeking investment options that provide consistent returns beyond traditional market investments. As an investment advisor, KBank Private Banking is tasked with identifying products that can deliver outstanding returns for investors, while also recommending that they allocate a portion of their investments into off-market assets, which will not be impacted by market fluctuations. Recently, KBank Private Banking partnered with UOBAM to introduce a mutual fund that invests in off-market real estate, specifically in the HOMA project, one of the first rental housing developments in Thailand that embraces the concept of 'living and engaging together' to cater to the lifestyle of the new generation who can work from anywhere. In the long term, given the current trend of people preferring to rent rather than buy homes or condos due to high prices, and considering the impact on investments in office buildings or shopping malls post-COVID-19, it is believed that this fund will provide more consistent returns. This has significantly attracted high-net-worth clients to invest in the HOMA project through UPREQ1-UI, which raised 1.2 billion baht in just one week after its launch.

Mr. Blake Olafsson, Founder and Managing Director of HOMA mentioned that HOMA is designed to create a community among residents, offering comprehensive amenities including a fitness center, facilities for a good quality of life, and co-working spaces. The target audience for HOMA includes young professionals, digital nomads, and families with young children who seek a dynamic living environment with friends and activities shared with other residents in the same building. Residents can stay at HOMA for durations ranging from one day to one year.

Moreover, HOMA places a strong emphasis on sustainability, with all projects under the HOMA brand certified by LEED or EDGE (green building certification programs). This is expected to generate positive responses from investors. Additionally, HOMA is a property that benefits from investment incentives from the BOI, allowing foreign companies to own and possess land in Thailand 100% without needing a Thai partner, and also enabling them to sell their business to both foreign and Thai investors. This expands the pool of investors interested in acquiring HOMA due to the fund's potential for real estate development, and we believe that HOMA will have viable exit strategies as the project matures.

Dr. Tripol concluded: “Returns from co-owning the HOMA project through investment in UPREQ1-UI come from 1) the ability to generate consistent rental income and the annual increase in rental prices, which adds value to the project, and 2) the appreciation of land and buildings, coupled with effective management, which enhances the project's value as it owns the land and buildings.”

Both factors mentioned above support the HOMA project in increasing its value and generating returns for investors. Interested parties can invest in individual projects or purchase all projects. The fund manager will determine which method will yield the highest returns for investors. KBank Private Banking believes that investing in this fund will provide an average return of 14-15% per year, with a lock-in period of 7 years for the investment.

In addition to the UPREQ1-UI fund, KBank Private Banking plans to continuously introduce off-market assets in the latter half of 2023. The next fund to be introduced will focus on investing in newly established companies (Venture Capital) that have the potential to generate higher returns than typical off-market equity funds, albeit with potentially higher risks. However, the fund will manage risks by diversifying investments across hundreds of companies in various technology-related sectors such as Consumer Tech, Health Tech, Enterprise Tech, and Climate Tech, as well as spreading investments across multiple regions: 40% in the U.S., 40% in Europe, and 20% in other parts of the world. This fund will collaborate with Lombard Odier, a business partner with extensive experience in private market investments, particularly in managing Venture Capital funds globally for over 11 years, with a team of experts and access to a network of over 130 fund managers covering more than 200 investment strategies and over 4,000 businesses, with plans to introduce it in July.