MA Financial is seeking to raise A$1bn-plus (€605m) for a Warburg Pincus-backed Australian real estate credit vehicle.
MA Financial aims to initially raise at least A$700m by the end of the year for the new fund that will invest in Australian real estate credit, providing global institutional investors with access to the market for funding developers and residential real estate projects.
The manager said it is offering notes to raise the capital,
Warburg Pincus intends to market the notes to several existing Warburg Pincus funds, some of which have indicated interest, and select investors in its network.
As part of an agreement, Warburg Pincus will receive options for 2.5m MA Financial shares in the first tranche upon reaching a A$500m fundraising target. A second tranche of 2.5m options will be available if the fund reaches A$1bn.
MA Financial will manage the vehicle and co-invest through equity and notes in the vehicle for up to 2% of the total capital.
Takashi Murata, co-head of real estate, Warburg Pincus, said: “MA Financial has a highly experienced team and a strong track record investing in Australian real estate credit and we believed well positioned to close the funding gap in the acutely undersupplied Australian residential market.”
Joint MA Financial CEOs Julian Biggins and Chris Wyke said the launch of the new institutional real estate credit vehicle with Warburg Pincus is expected to significantly broaden the reach of “MA Financial and continue to build on the strong foundations that our teams have built over the past 15 years”.
Anthony Habis, MA Financial MD and head of global partnerships, said: “The Australian residential market is very attractive investment market, and this vehicle will help meet the demand for sophisticated borrowers as Australian addresses a nation-wide housing shortage.”
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