Catenary Capital aims to enhance Malaysia’s Shariah PE opportunities

Underpinned by a commitment of up to RM300 million (US$74.73 million) from Malaysian civil service pension body Kumpulan Wang Persaraan (KWAP), Catenary Capital caters to institutional investors, especially those seeking structured, Shariah compliant access to real estate opportunities in Malaysia and selected international markets.

Established as a joint venture between Malaysia’s Foster Capital and UK-based Castleforge, Co-Founding Partner Hizzan Hamid told IFN Investor that Catenary Capital aims to enhance Malaysia’s real estate fundamentals.

“Many opportunities require active asset management, structured oversight and institutional level underwriting before they are ready to be absorbed by long-term capital.”

This initiative came with KWAP appointing Castleforge as a real estate general partner under the Dana Pemacu initiative – a program designed to accelerate the development of Malaysia’s private market investment ecosystem.

Malaysia is the initial focus – driven by local partner Foster Capital – on industrial and logistics assets, digital infrastructure such as data centers and select living related real estate.

“These are all sectors benefiting from shifting consumption patterns, policy support and sustained demand from corporates and communities alike. Our approach aims to unlock value through active, locally informed execution.”

The first project undertaken by Catenary Capital is a RM600 million (US$152.18 million) deal with Rivertree Smart Shelter Builders to develop four foreign worker quarters with a total capacity of 28,800 beds near the capital city, Kuala Lumpur.

Additional funding is to be sourced via the firm’s platform to attract both conventional and Shariah aligned investment structures – accommodating both on-shore and offshore capital deployment, explained Co-Founding Partner Lock Jian Wah.

“Over time, the platform is designed to invite participation from additional institutions including those seeking Shariah compliant real estate exposure, as new strategies and projects are brought to market.”

Catenary Capital will also look beyond Malaysia – its strategy extends selectively into the UK and European markets through the Castleforge partnership, Hizzan added.