Warburg Pincus Real Estate Fund has invested A$490 million (€302 million) in MA Financial’s newly launched Australian Real Estate Credit Platform.
Global private equity firm Warburg Pincus Real Estate Fund has made a capital commitment to a real estate credit vehicle that aims to raise A$1 billion.
Launched in August, the MA Financial vehicle aims to capture financing opportunities in Australia’s home construction and sales sector.
Takashi Murata, Managing Director, Co-Head of Asia Real Estate and Head of Japan at Warburg Pincus, said: Demand for housing is decreasing, mainly due to the tight credit environment and rising construction costs.
“Over the next five years, the cumulative housing shortage is projected to reach approximately 254,000 units, with a corresponding increase in annual population growth of 30%.”
Murata added that there is an estimated US$37 billion (€34 billion) funding gap that needs to be addressed as traditional lenders tighten credit. “As Australia grapples with the national housing shortage, this new vehicle will help meet demand from sophisticated renters.”
Julian Biggins, co-CEO of MA Financial, said: “Warburg Pincus’ dedication and support, and the encouraging response we have received from like-minded global investors on this strategy, have led us to successfully complete this project. “We are optimistic about the vehicle’s potential for future success.”
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