Australian green bank CEFC has committed A$160m (€93m) to invest alongside a Goldman Sachs Alternatives-managed Australia real estate credit fund.
The CEFC investment is to be deployed alongside the Goldman Sachs Alternatives Real Estate Credit Partners IV (RECP IV), a fund with more than US$7bn (€6.4bn) of lending capacity.
CEFC and RECP IV will co-invest in construction debt facilities, primarily in the residential and commercial office sectors.
Richard Spencer, chief investment officer for real estate credit at Goldman Sachs Alternatives, said: “The RECP programme leverages our rigorous due diligence and valuation practices to identify high-quality real estate assets globally and ensure alignment between investing partners, borrowers and their customers.
“We are pleased to be working with the CEFC as we continue our long history of lending to high-quality real estate projects in the Australian market.”
CEFC head of property, Michael Di Russo, said: “This investment demonstrates the power of private capital to rapidly effect systemic change across the building sector and encourage the implementation of stronger sustainability measures in the broader Australian real estate market.
“Our investment will also demonstrate how Australian non-bank lenders can enhance their investment approach from one of passive reporting to a more active approach focused on driving meaningful transitional change. This in turn will incentivise the construction sector to lift sustainability standards, which are essential to our transition to net zero emissions.”
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