European pension fund invests $200m in Australian CRE debt vehicle

European pension fund invests $200m in Australian CRE debt vehicle

Australian commercial real estate investment manager MaxCap Group has taken a A$200 million investment from an unnamed Northern European institutional investor for its commercial real estate (CRE) debt vehicle.

This is the investor’s first venture into real estate debt in Australia and represents a new partnership with MaxCap, the investor having identified Australia as a key market in the Asia Pacific region.

The initial investment will be placed via the First Mortgage investment option of the MaxCap Investment Trust, MaxCap’s flagship highly diversified, and evergreen CRE debt vehicle.

The representative of the institutional investor said: “The Asia Pacific region, and in particular, Australia, offers compelling risk-adjusted return opportunities. MaxCap is an experienced manager with a proven track record of performance. We are delighted to partner with them to gain access to this asset class.”

MaxCap’s evergreen platform, the MaxCap Investment Trust (MIT) offers ongoing access to Australasian commercial real estate debt opportunities. Investors have the choice of two product options, First Mortgage or High Yield, depending on their preferred risk appetite and investment return targets. The First Mortgage and High Yield mortgage products target net returns of 5.00% and 8.00% above the Reserve Bank of Australia cash rate respectively.

Robert Hattersley, MaxCap Group Head of Capital said of the partnership: “This is a leading institutional investor with extensive experience in the global market. We are proud to commence our relationship with them and confident of building a long-term relationship together. Their investment aligns with increasing institutional capital inflows into the CRE debt sector in Australia. Our sector presently benefits from strong structural tailwinds, heavy regulatory pressures on the bank sector, and negative correlations to real assets and equities.”

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