LHGI signs MOU with Licensed Fund Manager Passion Venture to set up Projagg Fund
Las Vegas, Nevada--(July 21, 2020) - Lighthouse Global Holdings, Inc. (OTC Pink: LHGI) ("LHGI") has signed a MOU with Passion Venture Capital Pte Ltd (PVC), to set up funds specifically for financing the development projects within the Projagg platform. Projagg is a project aggregator for real estate and infrastructure development industry.
Under the Monetary Authority of Singapore (MAS) and the Accounting and Corporate Regulatory Authority (ACRA) framework, a Variable Capital Company (VCC) can be used for a wide range of investment funds to provide fund managers greater operational flexibility and cost savings.
PVC is a Capital Market Services (CMS) licensed Fund Manager, founded by Davy J. Goh. Davy has more than three decades of business, banking and finance industry experience serving both local and international companies. His passion with investing and growing Fintechs and innovative businesses led him to start PVC.
Projagg, a real estate and infrastructure development platform, has a pipeline of more than 20 projects to explore and review based on their feasibility and viability. Many of these projects involve development of various types such as residential, commercial, industrial, hotels & resorts and infrastructures that require funding range of US$2 million to US$100 million.
Danny Lim explained, "Funding Development Project is a huge potential. However, there are just too many factors that increase its risk. With the collaboration of Projagg and PVC, we intend to reduce such risks to a similar level of asset investment."
PVC has agreed to collaborate with LHGI to raise the capital dedicated to projects executed strictly within the Projagg platform.
"PVC is a result-oriented fund manager that aims to provide an avenue for investors seeking access to growing Asian economies. We invest in start-ups and provide seed money for companies with the potential to grow and tap into the vast global consumer markets. We intend to formulate, together with LHGI and Projagg leveraging Projagg unique vault chain technology, to create winning investment strategies that will make project development funding an asset-class investment," commented Davy J. Goh.
Real Estate Development has long been touted as a risky investment and not for the faint-hearted investors. Developing ground-up projects are fraught with risks of uncertainty: situational crisis like the Covid pandemic, construction delays, misuse of funds and mismanagement of projects. Projagg serves as a tool to ensure total transparency and accountability of fund disbursement during the entire development period. This eliminates any potential of frauds, misuse or misappropriation of funds.
Davy J. Goh added, "Together with LHGI - 2 specific purpose funds; First is Projagg REDV Fund for real estate development projects that caters to mini-project funding of US$2 million to $6 million per project. Second is Projagg Green Fund, which will be open to Institutional and Family Offices with the primary mandate of investing in renewable energy in the developing Asian Countries to assist these countries to move to clean energy."
Since early 2019, investors seem bullish on Build-to-core deals. A Build-to-core portfolio consists of development projects, as well as a stabilized portfolio of modern assets derived from completed projects. The global construction is set to rise to US$12.9 trillion by 2022, according to GlobalData Construction Intelligence Centre.
The potential of project funding seems to be a huge opportunity for investors. Projagg should be able to reduce some risk factors to provide more confidence to investors.
"We are hopeful that with this Projagg REDV Fund and Projagg Green Fund set up, we will help Real Estate Developers get their projects funded and completed at highest efficiency. We are excited that our acquisition strategy is on the right track, and should significantly add value to our holdings company soon," said Danny Lim.
As for the Green Financing, wind and solar power have been the main driving force for private fund investment in renewables, as illustrated by chart. Cost has reduced as better efficiency technology increases output at a lesser cost per KW. Unfortunately, most electrical bills had not gone down yet. Nevertheless, investors still view renewable energy as the most attractive infrastructure investment as a long term asset-class portfolio, while doing good for the environment and the country.
According to a report by PwC, renewable energy investments may surpass US$250 billion by 2025. With favourable government policies and readiness, more renewables are expected to be replacing coal energy in the future. Projagg Green Fund should be able to position themselves well to attract more funding as they have an edge over the other funds. Projagg is powered by vault chain technology and this ensure investors that their capital are protected.
With this third MOU signing within 30 days, LHGI has finally unveiled its plan on how it intends to grow and nurture start-ups into Unicorns. Hopefully, their portfolio of start-ups will be successful and grow exponentially as their Projagg Funds take shape and take off.