A Warburg Pincus real estate fund has invested A$490m (€302m) in MA Financial’s newly launched Australian real estate credit platform.
The global private equity firm’s Warburg Pincus Real Estate Fund has made the capital commitment to the Real Estate Credit Vehicle which is seeking to raise A$1bn.
The MA Financial vehicle, which was launched in August, aims to capture financing opportunities in Australia’s residential build-to-sell sector.
Takashi Murata, managing director, co-head of Asia real estate and head of Japan at Warburg Pincus, said: “We have built a strong conviction in the secular tailwinds of Australia’s residential market, driven by the immigration-led population growth and the undersupply of housing primarily due to a tight credit environment and higher construction costs.
“Over the next five years, the cumulative dwelling shortage is projected to reach approximately 254,000 units, alongside an anticipated 30% increase in annual population growth.”
With traditional financiers tightening credit, Murata added there was an estimated US$37bn (€34bn) funding gap that needs to be addressed. “The new vehicle will help meet the demand from sophisticated borrowers as Australia tackles its nationwide housing shortage.”
Julian Biggins, MA Financial’s joint CEO, said: “With the commitment and support of Warburg Pincus and the encouraging responses received from like-minded global investors regarding this strategy, we are optimistic about the vehicle’s potential for future success.”
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