Australia’s leading industry super fund, AustralianSuper has secured its single largest commercial real estate debt in its home market for A$360m (€225.1m).
The A$160bn super fund is behind the facility for a A$630m Brisbane office redevelopment project, and arranged by Melbourne-based property debt specialist MaxCap Group.
The borrowers are developers Ashe Morgan Group and DMann Corporation.
AustralianSuper declined to comment on the transaction, beyond confirming to IPE Real Asset that it was the funder behind the construction loan.
The facility is being described as Australia’s single largest non-bank senior debt facility.
Wayne Lasky, MaxCap’s managing director, said the construction facility was for Midtown Centre, a premium office redevelopment in the centre of the Brisbane.
Mendy Moss, principal of Ashe Morgan Group, said the funding was necessary to complete the project and allow the Ashe Morgan/DMann team to focus on delivering the development.
Global miner Rio Tinto will be the anchor tenant.
Lasky told IPE Real Assets: “The current environment is very conducive for a specialist like MaxCap. We also have a long track record over 15 years with the borrowers.
“They know that, when we issue terms, we will be there to fund. There is no other financier in the country who has issued a term sheet for A$360m to be funded in one line.”
Lasky said the Australian commercial real estate debt market as an investment strategy was increasingly carving out its place as a stand-alone asset class in institutional portfolios.
In addition to local fund, international capital continued to flow into the market, he said.
Dutch asset manager, APG Asset Management, recently awarded MaxCap an exclusive investment mandate, committing up to A$600m in Australian real estate debt.