Qualitas’s real estate opportunity fund has financed its first asset, providing AUD107m (€72.4m) of debt for a residential and retail project in Sydney.

The investment manager provided mezzanine debt for the Iconic Waterloo scheme alongside senior lender NAB.

Qualitas last month raised an initial AUD200m from global and domestic investors in a first close for the fund.

The vehicle is providing equity and mezzanine debt for commercial, retail and residential projects.

The project, a joint venture between developers Thirdi and Milligan Group, will include 76 apartments.

Tim Johansen, managing director of real estate finance at Qualitas, said: “The partnership with Thirdi and Milligan Group ticks all the boxes for the fund, including strong, risk-adjusted returns and a high level of trust in the team behind the project.”

The companies said 38 units in the scheme, 4km east of central Sydney, had been sold so far.

“Iconic Waterloo is a high-quality, boutique development in an area where the majority of competing supply is large high-rise developments, largely targeted to investors,” Johansen said.

“This gives it a strong competitive advantage, which we’ve seen reflected in positive pre-sales to date.”