LONDON (Alliance News) - Adamas Finance Asia Ltd Wednesday said an investment fund in which it invested USD500,000 in April 2014 has achieved a gross internal rate of return from a newly exited project.
In a statement, Adamas said that BRJ China Credit Fund Ltd's exit from Project Renheng comes within a month of its first exit from Project Changlelu, which achieved a 31.83% internal rate of return.
BRJ was launched in August 2013 by Hong Kong-based Adamas Asset Management (HK) Ltd, which since February 2014 has been has been acting as Adamas's investment manager.
With Project Renheng, BRJ provided bridging finance for a pharmaceutical business in China. The borrower has now repaid in full both the principal CNY13.0 million loan plus interest, which was structured by the Adamas investment team as an early investment by the BRJ Fund.
The exits from Project Renheng and Project Changlelu have increased BRJ's net asset value, and the cash generated is available for future investment, Adamas said.
"The BRJ investment in Project Renheng was in line with the strategic approach followed by the Adamas investment team, which places strong emphasis on rigorous due diligence, tight management involvement and an insistence on robust collateral," Adamas said in a statement.
"The collateral backing Project Renheng was two penthouse apartments in a prime location in Pudong, the Central Business District of Shanghai. The collateral was further underpinned by corporate guarantors involved with the borrower and a personal guarantee. The overall loan-to-value ratio was 29.78%," Adamas said.
BRJ was launched by Adamas to provide capital for operationally-sound Chinese small and medium enterprises in need of short-term bridging finance not easily available within the People's Republic of China. The fund plans to invest USD50.0 million, seeking target returns of 24%-30% a year, with the objective of an annual dividend of 8%, payable semi-annually.
Adamas shares were Wednesday quoted at USD0.08, untraded.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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