Solowin to invest up to $150 million in Reitar’s logistics assets

HONG KONG - Reitar Logtech Holdings Limited (NASDAQ:RITR), whose stock has surged over 70% in the past six months and currently trades at $5.11, has entered into a strategic partnership with Solowin Holdings (NASDAQ:SWIN) that could see Solowin’s fund investing up to $150 million in Reitar’s logistics automation facilities, according to a non-binding memorandum of understanding announced Tuesday. InvestingPro data shows the company has maintained strong momentum, with an 8% gain in the past week alone.

The agreement outlines plans for Solomon Capital Fund SPC-Solomon Capital SP9 to invest in Reitar’s logistics automation facilities and automated cold storage assets to jointly develop logistics asset tokenization and stablecoin applications.

The partnership aims to combine Reitar’s smart logistics technology with Solowin’s fintech and digital assets expertise to advance digital transformation in the logistics industry, particularly in Southeast Asia and the Middle East markets.

The collaboration focuses on three main areas: logistics asset tokenization development, stablecoin ecosystem development, and global market expansion. The companies plan to tokenize income rights from logistics park rentals and cold chain service fees, while also supporting Reitar’s planned issuance of a Hong Kong dollar stablecoin called RHKD for logistics payment settlements.

Additionally, the partners will explore establishing a special investment fund in Qatar for logistics digital infrastructure projects in the Middle East.

"Through logistics asset tokenization and stablecoin applications, we believe this partnership has the potential to help reshape the logistics industry and create new value for investors and customers," said John Chan, Chairman and CEO of Reitar Logtech, in the press release. The company, with a market capitalization of $319 million, has demonstrated robust revenue growth of 50% over the last twelve months, according to InvestingPro analysis, which also reveals 12 additional key insights about the company’s performance.

The companies envision a multi-phase implementation timeline, beginning with a pilot phase at Reitar’s automated cold storage facility in Hong Kong, followed by expansion into Middle Eastern and Southeast Asian markets, and eventually into European and Latin American markets.

Reitar Logtech describes itself as Asia’s integrated Property-Logistics Technology solutions platform, while Solowin Holdings operates in securities brokerage, investment consulting, digital asset trading and asset management.

In other recent news, Reitar Logtech Holdings Limited announced the formation of Pine Forest Holdings Limited, a new subsidiary dedicated to managing vertically integrated food supply chain operations. This development involves the integration of approximately 1,333 hectares across eight agricultural bases in mainland China, achieved through collaboration with Rich Harvest Agricultural Produce Limited. Furthermore, Reitar Logtech has signed a strategic Memorandum of Understanding with Rich Harvest to enhance agricultural supply chains using advanced technologies. The partnership aims to incorporate blockchain traceability, digital payment solutions, and smart cold chain technology to build an innovative ecosystem. These recent developments highlight Reitar Logtech’s commitment to advancing its agricultural supply chain operations through strategic partnerships and technological integration.

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