FAQ

1 What is MC Asia Management’s business?    

2. Who is behind MCAM?  

3. What about the ownership of MCAM?  

4. How long have MCAM’s management team worked together?  

5. How does MCAM compensate, incentivise and retain its employees?  

6. What differentiates MCAM from its competitors?  

7. What is MCAM’s policy in handling conflict of interests and disclosures?  

8. Explain how MCAM conducts its RISK ASSESSMENT AND its MANAGEMENT OF BUSINESS RISK.  

9. What is MCAM’s currency hedging policy?  

10. What regulatory authorities is the MCAM registered with and what is the date of registration?  

1. What is MC Asia Management’s business?
MC Asia Management Pte Ltd ("MCAM") is an Asian boutique investment and asset management company that focuses on optimizing total returns for its clients in their real estate investments through income generation AND asset value enhancements.  

MCAM’s team has managed private real estate funds and real estate related assets through dedicated funds or separate accounts for institutions, corporations and individuals. It is responsible for the management and administration of the funds and assets, as well as implementation of the investment and asset strategies. Its first investment fund, MC Asia Holdings Limited, is focused on opportunistic and income-producing real estate investments in Asia, starting with Southeast Asia.

2. Who is behind MCAM?
MCAM was started in 2005 and is led by property veterans who had built their careers in some of the largest real estate firms in Asia. The MCAM directors have been involved in all aspects of investing and managing properties across many capital cities in Asia for over 20 years. They bring to MCAM and its clients multi-disciplinary skills, contacts with major Asian real estate players and a proven track record of successfully operating in Asia. Over these past years, despite the very difficult investment climate worldwide, MCAM managed investments have done well.

3. What about the ownership of MCAM?
The founder of MCAM is Mr Larry Chua. He set up MCAM after a successful career in Rodamco Asia ("RA"). RA was a pan-Asia/Australia property fund listed on the Amsterdam and Frankfurt stock exchanges. Larry was RA's Board Member and Managing Director and under his stewardship, the portfolio grew four-fold to c. US$1 billion. RA was later merged into the Asian platform of ING Real Estate Investment Management ("REIM") where he was its Senior Managing Director and continued to develop new businesses for ING REIM. Larry started his career with Singapore’s urban planning & redevelopment authority (URA) and subsequently became the first Group General Manager of its privatized unit, Pidemco Land (which later became CapitaLand, the largest property firm in Southeast Asia).

4. How long have MCAM's key management team been working together?
The key management team worked with Larry in various capacities prior to joining MCAM; the longest being 30 years.

  5. How does MCAM compensate, incentivise its employees?
MCAM compensation policy focuses its staff to be aligned with the investors. It rewards its employees by offering comprehensive and market-competitive compensation and benefits. The incentive plans include short-term cash bonus programs and plans to provide long-term reward such as performance shares programs. To ensure that MCAM remains competitive and continues to attract and retain good talents, it constantly benchmarks its compensation strategies against markets norms.

6. What differentiates MCAM from other boutique Fund Managers?
MCAM brings the following critical success factors to a Partnership:  

a. Multi-disciplinary Skills 
The Directors have successfully executed activities across the spectrum of the property value chain. From acquisition assessment, development, refurbishment, tenant mix review, cost management, investment and divestment, risk management. In other words, MCAM is just as comfortable with execution of the nuts and bolts of refurbishing old buildings as evaluating the financial and corporate structuring of an investment strategy.

b. Access to Strong Partners in Asia
Over their careers, the Directors had managed, developed and repositioned a number of properties and asset-classes across various cities in Asia. As a result, the Directors have cultivated strong working relationships and friendships with the owners and top executives of some of the major real estate groups in Asia. These were forged over the years and strengthened during the 1997 Asian financial crisis when they worked together with these partners to overcome the many challenges of those times. These partnerships are valuable for any investor seeking opportunities in these Asian markets.

c. Values Integrity and Commitment
The Directors built their careers in large institutions with strict business practices and strong corporate governance. Over the years, they have adopted these as their code of conduct in business and in managing partnerships. They uphold the value of integrity and always strive to achieve a win-win outcome for all stakeholders. Their commitment to surpass investors and partners expectations has been the key in forging strong relationships that they now enjoy with many business leaders in the region.

d. Value Creation
Having been through a few property cycles, the Directors are able to spot opportunities. Once an acquisition is made, the MCAM team would focus to unlock/ create value from the assets through subtly combining their knowledge of real estate international best practices with local Asian knowledge and cultures. These are core skills in maximising returns objectives for their clients.

7. What is MCAM's policy in handling conflict of interests and disclosures?
MCAM requires all staff to declare any conflict of interests to the Directors of the Fund under its management. Should a possible conflict arise between different Funds, the following procedures will be adopted:

The manager shall be dedicated solely to the Fund and will not be involved in any other funds. All matters related to the Fund shall be decided by its Directors who shall not have such conflict of interests.

All dealings shall be undertaken on an arm's length basis and on normal commercial terms, which are generally no more favourable than those extended to unrelated third parties.

If MCAM is required to decide whether or not to take any action against any person to a breach of any agreement, MCAM shall consult with a reputable law firm to provide legal advice on the matter. If the said law firm is of the opinion that there is a case against the party allegedly in breach, then MCAM shall pursue the appropriate remedies under such agreements so as to protect the interests of its investors.


8. Explian how MCAM conducts its RISK ASSESSMENT AND its MANAGEMENT OF BUSINESS RISK.
MCAM takes a pro-active approach towards risk management to ensure that risks accompanying the investments are identified, assessed and actions taken to minimize any adverse impact on the investments.

Effective risk management is a fundamental part of MCAM's business strategy. Recognising and managing risk is key to the business and is necessary to protect investors' asset. MCAM works within guidelines set by the Fund. Each transaction is to be thoroughly analysed to appreciate its risk.

The risk management framework supports this approach and provides a structured format for undertaking this review and in identifying future risks facing, these assets. This information is then used as input into the Fund strategy review sessions. M CAM ensures that suitable checks are in place to monitor these risks. In addition, key risk indicators, which act as early warning signals, are closely monitored. An internal audit plan is also set up to monitor and ensure the checks are in place to monitor these risks.

The Board reviews every quarterly the performance of the Fund against an approved target. The Board will also review the risks to its assets and act upon any comments by its auditors.

MCAM must determine and quantify the risks and reflect this against the returns that can be achieved in making any investments. Accordingly, MCAM has an established due diligence procedures to be adhered to ascertain all such risks before participating in the investment. With these, a recommendation is made to the Board recommending its investment in the asset. The Board approves all investment decisions.

9. What is MCAM's currency hedging policy?
MCAM believes that investments in any region should be partly financed by bank borrowings in local currency. This is natural hedging and is the most optimum currency hedging strategy. Although currency exposures can be managed to some extent, a depreciation or fluctuation of the currencies in which the Fund conducts its operations could adversely affect its financial conditions and the results of operations.

10. What regulatory authorities is MCAM registered with?
MCAM is registered in the Republic of Singapore.