Australian property lender MaxCap, via its first construction fund, has invested alongside a Hong Kong-based capital partner in a A$170m (€103m) debt facility to fund a residential development in the Melbourne suburb of Box Hill.

MaxCap declined to reveal the identity of the Hong Kong co-funding party.

Preliminary work had been completed, and construction of the Panorama Box Hill residential tower would take about two years. On completion, the development will have 396 apartments, 21 office suites and six retail premises.

Brae Sokolski, MaxCap’s co-founder and CIO, said: “Throughout the COVID-19 pandemic, we have led the industry in continuing to actively lend to credit-worthy projects, providing support to our clients at a critical time.”

Sokolski said that the economic climate today was “tough” for the development industry.

Nevertheless, MaxCap and its partner were attracted to the investment because of the strong dynamics of the market in that part of Melbourne.

Sokolski said the project had been well received by the market, with more than 70% of stock pre-sold as of mid-July 2020.

To read the digital edition of the latest IPE Real Assets magazine click here.