CapitaLand and an Australian institutional investor have backed Madigan Capital, an Australian real estate debt asset management firm, in a A$625m (€359m) senior debt facility for a logistics project in Western Sydney.

The construction loan will fund the development initially of four warehouses providing 115,000sqm of net lettable space in the precinct that will ultimately provide 580,000sqm of industrial estate in proximity to the Western Sydney Airport.

“This transaction highlights the continued strength and appeal of well-sponsored, high-quality Australian industrial real estate development and the important role for non-bank financiers in delivering aligned real estate finance solutions,” said Chris Wilson, CEO at Madigan Capital, which is owned by senior executives and the European-based CC Real, which has a strategic stake.

“As a leading financier in the industrial real estate space, Madigan remains confident in the sector’s potential to deliver strong, risk-adjusted returns for participants,” said Wilson, who recently joined Madigan from the Future Fund.

Wilson said the debt facility was the largest single loan position that Madigan had participated in this instance with two co-lenders.

A CapitaLand Investment spokesperson told IPE Real Assets: “In addition to this senior debt facility, we are acquiring Wingate, one of Australia’s largest private-credit managers with a track record of over A$20bn in real estate transactions.”

The spokesperson said the group closed its maiden credit fund, the A$265m Australian Credit Program, backed by Asian institutional investors. “Australia is one of CLI’s key markets – and these milestones reinforce our conviction in the Australian market and our ambition to build a leading institutional private credit platform in Asia Pacific.”

To read the latest IPE Real Assets magazine click here.

Topics