Media Interview | Asian Private Banker: “A perfect match”: Why is this Hong Kong property agency entering the MFO market?

By Stanley Yupu Li, senior reporter | 21 November 2024

Being one of the largest property agents in the city, Centaline Property Agency is an instantly recognisable and omnipresent feature on the streets and malls of Hong Kong.

But Centaline Group now has its eyes on a new line of business, having recently established its own multi-family office (MFO), which is aiming to hit US$1 billion in assets under management (AUM) within its first year.

“We will focus on Asian clients in the short term and hope to reach US$1 billion in AUM within a year,” Kelly But, founding partner and general manager of Centaline Family Office, told Asian Private Banker.

Centaline Family Office, which is backed by Centaline Group, was established in July. The firm manages around US$500 million in client assets, with nearly half of its clients being Hong Kong-based.

“Centaline Group focuses on the real estate agency sector. While the firm has been offering some financial investments such as securities and insurances, the set-up of Centaline Family Office will integrate various resources across the group to provide a holistic one-stop service to our clients,” But said.

To reach this ambitious AUM target, But shared the firm has already started to tap Centaline Property’s vast network of property agents for client referral. Centaline Property has around 1,500 branches across Hong Kong and mainland China, with more than 30,000 employees, according to its website.

“We are in talks with some private banks about potential collaboration for clients interested in property-related investment products and services”

“We provide them with training sessions to better understand the services Centaline Family Office offers. The events are on a small scale at this moment. Centaline Property has an army of agents, so we started with one to two districts at first.”

Meanwhile, But said there are also collaborations between the single-family office of Shih Wing Ching, founder of Centaline Group and Centaline Family Office. “We provide our clients with more transparent information than many of the market players. When clients choose us, they know which family they are investing with on the same platform,” she said.

This proposition may appeal to some clients given there is no shortage of scandals in Asia’s booming external asset manager (EAMs) and family offices industry in part due to their secret nature. Regulators in Hong Kong and Singapore have been ramping up their scrutiny of this sector.

Building up the team

But has over a decade of asset management and corporate finance industry experience. Prior to setting up Centaline Family Office, she had held senior positions at several companies listed on the Main Board of the Hong Kong Stock Exchange, including Sino ICT and Value Partners Group.

One of her most pressing priorities is to enhance the team. She said the firm plans to recruit 10 experienced relationship managers (RMs) in the first year. She expects seven RMs to be onboarded by the end of this year.

Victor Chiu, who most recently was a managing director and senior partner at Avenue Financial Group, a Hong Kong-based EAM, joined Centaline Family Office in June. The firm also recently hired Patrick Ho, who has nearly 30 years of portfolio management experience from various international asset managers, including BNP Paribas and AMP Capital, to its investment team.

Meanwhile, Alan Tse, who was previously a general manager at Jebsen Capital, Jebsen Group’s growth equity investment team and in-house asset manager that manages more than US$1 billion in AUM, joined the firm as a senior advisor this month.

“We need more teammates with family office backgrounds and resources,”  But told APB.

Strategic partnerships

But shared Centaline Family Office will be adopting a strategic partnership approach to its services. The firm recently struck a deal with China Asset Management (HK) to leverage its investment expertise. Meanwhile, she told APB that some clients have already purchased China AMC funds through Centaline Family Office’s platform.

Although the firm’s current collaboration with private banks is a standard custodian relationship, But sees new opportunities. “It is a perfect match for Centaline Group to launch the family office business and to partner with private banks,” But told APB in the interview.

She explained while some private banks are able to cater to different financial needs of clients, they have relatively few property-related services. Centaline’s strength in the real estate sector can play a complementary role to private banks, according to But.

“We are in talks with some private banks about potential collaboration for clients interested in property-related investment products and services,”’ But said, without disclosing more details.

Hong Kong has recently tweaked its cash-for-residency scheme to allow residential property with a value of more than HK$50 million to count as a qualified investment under the scheme, a move wealth industry experts said will help attract high-calibre and long-term clients to the city.

Meanwhile, But shared Centaline Family Office is also discussing potential partnerships with experienced multi-family offices to get more overseas investment and co-investment opportunities for its clients.

Centaline Family Office also recently held a private event for a group of next-generation family members, according to But. At the event, Shih shared that his philosophy of wealth includes a family’s mission, values, and an ultimate desired legacy, while his daughter, Janet Shih, shared her experience of securing their family’s future and supporting the causes they value.

‘We want to build the platform into a close community where our clients can share and learn from each other’s experiences. This will take some time, but it is also our long-term vision,” she said.

Source: Asian Private Banker