Local diversified company Jet’s Group has launched a new collateral option that allows would-be homeowners to buy gold bullion from Hong Kong that can be used to secure investments in its Cambodian property developments, a company executive said yesterday.
Than Nareth, board director of Jet’s Metals Co Ltd, a wholly owned subsidiary launched in July, said the company has invested $300,000 and has purchased about 6 kilograms of gold bars that investors can buy through the company instead of putting down cash for housing units in its $90 million SkyLand residential project.
He added that the purchasing of physical gold, which as of yesterday was worth approximately $42,800 per kilo, gives potential investors a diversified collateral option whose intrinsic value fluctuates according to global prices.
Under the newly launched “Buy Gold Reach House” programme, a customer can purchase 1 kilogram of gold bullion which then acts as 70 percent of the collateral needed to secure a home at a 5 percent annual interest rate. While Jet’s Metal will hold onto the purchased gold until the home is paid off, customers will be given secure purchase certificates.
“We will use the gold as collateral in order for customers to secure houses,” Nareth said. “However, with gold prices projected to keep increasing in the next three to five years, it also gives customers the opportunity to make profits off of their investment.”
Srey Chanthorn, founder of Jet’s Group founder and chairman of Jet’s Metal, signed a memorandum of understanding (MoU) in July with Hong Kong’s Marigold International Bullion Dealers Ltd that allows the company to sell gold bullion and silver coins, as well as issue gold purchase contracts.
The SkyLand satellite city is a joint development of Jet’s Group and India-based real estate firm STAR5 Development Pvt Ltd. The project includes a $30 million affordable-housing apartment complex as well as a $60 million luxury housing development in Kandal province.