Sun Hung Kai & Co. Launches Mortgage Servicing Business to Manage a US$100M Institutionally Owned Residential Mortgage Portfolio

HONG KONG SAR – EQS Newswire – 11 November 2024 – Sun Hung Kai & Co. Limited (SEHK: 86, “SHK & Co.”) is pleased to announce the launch of its new mortgage portfolio services. This initiative focuses on managing a residential mortgage portfolio recently acquired by institutional investors. Sun Hung Kai Credit Limited (“SHK Credit”), a subsidiary of SHK & Co. and a leading non-bank property mortgage provider in Hong Kong, will offer comprehensive administrative services and institutional-grade portfolio performance monitoring to these investors.As the Hong Kong property market begins to stabilise, developers are increasingly focusing on the sale of residential units and optimising their balance sheets. This has led to more developers divesting their residential mortgage portfolios and outsourcing their mortgage administration and servicing to third party service providers.

Gigi Wong, Head of Business Development, Real Estate and Private Credit at SHK & Co., shared her views, “As the cost of capital for mortgage portfolios is likely to rise, we anticipate an increase in mortgage portfolio disposals. Residential mortgage portfolio investments present a compelling opportunity to integrate our retail mortgage platform with our institutionalised private credit platform. This approach facilitates effective portfolio management and when leveraging our own capital, it would align our interests with those of our investors. SHK & Co. has been active in alternative investments, particularly private credit, for many years. With Hong Kong being one of our core markets, we are excited about this new initiative. We look forward to collaborating with prospective mortgage portfolio investors and developers going forward.”