A Warburg Pincus real estate fund has invested A$490m (鈧�302m) in MA Financial鈥檚 newly launched Australian real estate credit platform.
The global private equity firm鈥檚 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鈥檚 residential build-to-sell sector.
Takashi Murata, managing director, co-head of Asia real estate and head of Japan at Warburg Pincus, said: 鈥淲e have built a strong conviction in the secular tailwinds of Australia鈥檚 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.
鈥淥ver 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.鈥�
With traditional financiers tightening credit, Murata added there was an estimated US$37bn (鈧�34bn) funding gap that needs to be addressed. 鈥淭he new vehicle will help meet the demand from sophisticated borrowers as Australia tackles its nationwide housing shortage.鈥�
Julian Biggins, MA Financial鈥檚 joint CEO, said: 鈥淲ith 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鈥檚 potential for future success.鈥�
To read the latest 91传媒在线 magazine click here.
