Heng Fai Enterprises Limited
Company Overview
COMPANY HISTORY
After having moved to Canada in the early 1980s, Fai began to feel he was missing out on the corporate action in Asia. So around the late 1980s he started to look out for low-valued Hong Kong –listed companies to accumulate stakes in. His attention was drawn to little-known Keng Fong Sin Kee (stock code 185). Established in 1965, Fai joined as executive director in 1993 to provide a new strategic direction of the company.
Over the next few years Fai raised capital and transformed the Company to focus on restructuring and investment holding activities. The Company acquired stakes in troubled companies and began the painful process of rehabilitating and then disposing them. Under his directorship, he has successfully managed the Group assets and has increased its nett worth to unpresented levels from year to year. The NAV has increase from $40m in 1995 to currently $900 million.
Some of the more notable corporate transformations or deals the Company helped execute were:
China Gas Holdings Limited – Once a moribund fashion retailer, it was restructured into a clean energy company distributing liquefied petroleum gas in China. It became a highly successful company which we eventually disposed via a management buyout. At the end of 2013 China Gas had a market capitalisation in excess of HK$40 billion.
Skywest Airlines (“Skywest”) – Listed in Australia, the Perth-based carrier was embroiled in a hostile takeover. The then-Xpress Group financed and participated in the successful takeover led by a substantial minority shareholder. In April 2013, Richard Branson’s Virgin Airlines completed the 100%acquisition of Skywest, which became part of Virgin Australia.
SingHaiyi Group Limited (“SingHaiyi”) – At the height of the SARS epidemic in 2003 – 2004, then-Xpress Group extended a convertible bond to Singapore Exchange listed Futuristic Group, which was then involved in fit-outs and furnishings. After Xpress converted the bond and became a controlling shareholder, it restructured the business and disposed some assets. Following the 2008-2009 global financial crisis, it was transformed into a property developer and renamed SingXpress Land Ltd. The Company changed control in December 2012 to Haiyi Holdings Pte Ltd. As at the fourth quarter of 2013, it had a market capitalisation of around S$700 million.
Following the disposal of its entire stake in SingHaiyi in 2013, Xpress itself transformed its business strategy and changed its name to Heng Fai Enterprises Limited. It has four core focus activities:
Investment in Real Estate Investment Trusts (REITs) – In particular, the Group intends to focus on REITs in the United States (such as single-family homes or medical assets) as well as Asia as they can offer fixed income with higher yields and manageable risks.
Property Development and Investments – through the years Heng Fai Enterprises has developed expertise in design and building and will continue to look for opportunities in this area
Hospitality – As a seasoned hotel owner and operator, we plan to extend our hospitality businesses further.
Real Estate Management Services – to ensure quality and efficiency, Heng Fai Enterprises will undertake aspects such as project management, building management and corporate management of REITs.