Getting Started | First Cathay Group

Getting Started: Initiating the Investment

The Starting Point: Initial Meeting

Once initial contact is made between a representative of First Cathay and the prospective Investor and/or joint venture partner – a meeting will be schedule at a place convenient to both parties. This meeting may include advisers from the Investor’s side.

First Cathay will prepare an Agenda for this meeting to explore and coordinate how both sides and their advisors can come together to progress the relationship.

Investors Investment Objectives - Criteria

At an appropriate time First Cathay will present a listing of investment criteria, which once discussed and agreed will form the basis of progressing the search and purchase of complying international real estate.

In addition these discussions may include issues like:

The Investor’s available investment resources (cash, lines of credit and available financial facilities and collateral security available (both inside and outside the Investors country of domicile).

Present business operations (trading, manufacture or other investments) and banking relationships outside the mainland that may assist in the facilitating the ownership of real estate outside the Investor’s country of domicile.

First Cathay will provide an early assessment of the likely attainability of real estate assets which may accord with the Investor’s outline of criteria.

Fee Agreement

The agenda will include a proposed ‘fee for service’ in favour if First Cathay.

This Fee charged may have several components:

Fee based on hours expended, costs (travel and accommodation), fees and costs for retained external advisors (research and brokerage).

Fee based on successful performance – a flat fee plus fee based on the size of the deal or savings created for the Investor or a profit performance fee.

Principal Role for First Cathay or Joint Participation with The Investor

Both the Investor and First Cathay may propose entering a prospective real estate investment as partners, or under an alternative joint participation agreement.

First Cathay is open to such an arrangement should the Investor prefer the arrangement to proceed in this manner. This has been the case on previous occasions.

Equally, the Investment partner may wish to nominate partners for its own purposes.

Investment Funds.

First Cathay has prepared an outline for two proposed performance real estate investment funds originating within China. This is specifically for sophisticated Chinese Investors and Institutions looking to jointly invest in major and existing Western real estate portfolios.

One such fund’s investments will require the consent of joint investors.

The other fund will have an appointed manager who will have sole discretion on how funds will be invested – a high performance fund.

First Cathay will provide further information on both funds upon request.

Contractual Summary

A Memorandum of Understanding will be prepared for signature by both parties outlining the basis of the proposed business relationship.

This will also serve as the basis for the preparation of a more formal Contract or Agreement to be drafted by the respective Lawyers for both sides.