ASF Group’s strategy is to identify and develop key early stage projects through joint ventures and strategic investments with the goal of maximising shareholder value.
China has long been an investor in Australian property and resources. It is currently the ninth largest foreign direct investor in Australia and Chinese direct investment inflows into Australia in 2012 increased 21% from 2011 levels to reach AUD$11 billion). This has increased from AUD$9billion in 2010.
The key to ASF is its knowledge of both Chinese and Australian markets, industries, regulations and opportunities for growth.
Of particular advantage, is Chairman Min Yang’s well established and strong network of Chinese property, resources, trading and strategic investor partners in Singapore, Hong Kong, China and Macau.
Together, ASF’s team has a proven track record in identifying and developing early-stage investment opportunities which can be developed into high return projects. This is done through matching these opportunities to its key contacts allowing for joint ventures and strategic investments.
The identification process is an ongoing strategic practice based on a number of factors including market conditions and projections and allows the Group to identify a number of differentiated industries which it considers to be prospective for development and monetising investment. These industries include:
- Property Marketing and Services
- Resources & Resources Trading
- Travel Services
- Corporate Services
- Funds Management & Advisory Services
- Significant Investment Visa Program
“Australian energy-related infrastructure and civil infrastructure present large scale portfolio investment opportunities for Chinese corporate and financial investors.”
According to KPMG’s report “Demystifying Chinese Investment in Australia” dated March 2013, Chinese have long believed in real estate as a core investment category. “We are seeing more activity in the commercial residential, retail and hospitality sectors in key Australian cities and tourism destinations. This creates vast opportunities for Australian financial services, construction and design and architecture companies to jointly deliver new landmark real estate projects.”
There is also an ongoing Chinese investment interest in mining and gas projects and growing interest in agriculture renewable energy and real estate. Australia remains a stable and reliable supplier of high quality high volume natural resources: iron ore, copper, coal, gas which is needed as China’s urbanisation trend continues and the slow transition to cleaner energy takes place.
Another area in which ASF has diversified is the new Significant Investor Visa program. This program, which was announced in late 2012, has already attracted over 200 applications for the AUD5milion investment class visas. Chinese migrant applicants represent a large proportion of this group.
Overall, it is expected that investment in Australia is to remain a very attractive option for Chinese investment for the foreseeable future. However, this requires a thorough understanding of regulatory and other Australian market characteristics.
ASF has a key advantage when it comes to streamlining this process due to its experience, knowledge and contacts to win and successfully deliver major infrastructure projects.