Global alternative asset manager MA Financial Group has established an Australia real estate credit vehicle which is worth $1 billion. As the firm will be managing and co-investing the vehicle, global growth investor Warburg Pincus will be facilitating the offers to certain Warburg Pincus funds with the intention of investing in notes that the vehicle will be issuing.
“This initiative is a strong endorsement of and testament to MA Financial’s proven track record and significant expertise and capabilities in real estate credit investing,” said MA Financial joint CEO Julian Biggins.
“Through the vehicle, we will originate and manage credit facilities for high-quality real estate developers and projects with a focus on Australia’s residential build-to-sell sector, aiming to help close the funding gap in the acutely undersupplied housing market.”
Biggins further shared that the vehicle will be able to help meet the demand for non-banking lending options from borrowers as the country finds a solution for the housing shortage felt across Australia.
“The significant demand for housing in Australia’s residential property market provides strong tailwinds for this strategy,” said Biggins.
The vehicle will be providing institutional investors all over the globe with access to the country’s real estate credit market, which will fund high-quality developers as well as residential real estate projects.
The facilitation agreement also stated that Warburg Pincus will be entitled to options of up to five million shares from the MA Financial Group at a strike price of $6 once certain milestones regarding the commitment and deployment of capital are met.
“This initiative provides institutional investors around the globe with unique access to the combined expertise and track record of MA Financial and Warburg Pincus. Warburg Pincus have a track record of being selective in partnering with management teams to build out strategies, and this is an exciting development for MA Financial,” said MA Financial Managing Director and Head of Global Partnerships Anthony Habis.
Takashi Murata, the co-head of Asia real estate of Warburg Pincus shared his sentiments over the collaboration.
“We are pleased to support MA Financial in establishing this vehicle, which will provide a unique opportunity for (Warburg Pincus’ funds and other) institutional investors to gain access to Australia’s burgeoning real estate private credit market,” said Murata.
“MA Financial has a highly experienced team and a strong track record investing in Australian real estate credit and we believe the vehicle is well positioned to close the funding gap in the acutely undersupplied Australian residential market,” he added.
