APG has exercised an option to double its exposure to real estate debt in Australia with MaxCap Group to 1.2 billion Australian dollars (820 million euros).
APG had previously lifted its debt mandate with the Melbourne-based non-bank lender once since investing an initial A$300 million in 2019.
Wayne Lasky, executive chairman of MaxCap, told IPE Real Assets that APG had used an option to increase the initial investment to A$600 million, with another option to double that amount to A$1.2 billion. .
“We are close to fully committing APG’s first A$600 million,” Lasky said, adding that the Dutch investor’s preference was to place his capital in senior debt.
APG’s commitment came after Apollo Fund Management, which now owns 50% of MaxCap, gradually increased its debt investment to around $1 billion.
Lasky said the opportunity to place capital in the Australian market has increased as Australian banks are once again withdrawing from mortgage lending.
“If you look at our pipeline of qualified opportunities for the next 12 months, it’s well over A$8 billion. We’re currently writing about A$1.25 billion in new business per quarter, so we’re doing about 5 billion Australian dollars a year,” he said.
Graeme Torre, APG’s managing director and head of real estate for Asia-Pacific, said the pension fund was delighted to deepen its partnership with MaxCap on what he called “this scalable and sustainable strategy. “.
“Commercial real estate debt, as an institutional asset class in Australia, is a proven strategy that delivers strong risk-adjusted returns to the benefit of APG’s pension fund clients and their participants,” he said. he declares.
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