November 24, 2022

Barings Real Estate Debt Enters APAC With Three Significant New Loans Worth More Than A$320.4 million

24 November 2022 – Barings, one of the world’s largest diversified real estate investment managers, has expanded its real estate debt activities to APAC with three new loans in Australia and New Zealand, worth more than A$ 320.4 million (US$ 212 million).


In Australia, Barings has agreed an aggregate of A$ 259.3 million loans. In Sydney, the team has provided two loans totalling A$ 162.5 million to Scape, a high-quality sponsor and operator with well-known international institutional equity backers, to fund the construction of two Purpose Built Student Accommodation (PBSA) projects with a total of 517 beds.


Separately, in Brisbane, Barings provided A$ 40.3 million to a five-year, investment phase facility on a recently completed build-to-rent (BTR) project in Brisbane. Developed and managed by Arklife on behalf of national construction and development company ADCO Constructions, the project comprises 89 rental apartments, 200sqm of office and 140sqm of retail. The property benefits from high quality onsite community facilities, including a gym and wellness facility, playroom, private dining and function areas, rooftop pool, bar and dining areas and parking provisions for 116 cars.


In New Zealand, Barings successfully realised its investment in a NZ$ 130 million loan to Winton Land, a listed developer with large-scale projects across New Zealand and Australia, to fund the remaining site works and subdivision of 1,375 residential lots and four commercial units in Te Kauwhata, North Island. The residential lots are 84% pre-sold to the New Zealand Government, which has an AA+ S&P credit rating.


Sam Mellor, Head of Europe & Asia-Pacific Real Estate Debt, said: “Expanding our loan book to APAC is an exciting and important step in the ongoing growth of our global real estate debt platform, which now has a combined total of more than US$ 30.6 bn1 of commitments and we are now actively lending in 14 countries. We are uniquely positioned to provide financing solutions for borrowers as we have capital available across the risk return spectrum from senior core loans, whole loan transitional loans out to construction lending and see a real opportunity in the APAC markets, driven by a gap in financing from traditional lenders.”


He added, “All three loans have strong ESG credentials and the sponsors are highly regarded leaders in their markets, while residential real estate in Australia and New Zealand offers an attractive supply-and-demand dynamic.”


“The breadth of these loans, which include BTR, PBSA and other residential sectors, is a strong signifier of our capabilities in this market and we are very keen to identify more such opportunities. These deals complement our real estate debt activities in the EMEA region and we have significant appetite to further grow our loan book in APAC across residential, student housing, logistics, grade A office with strong ESG credentials and selectively in hospitality. We will continue to reinforce our local expertise, which coupled with our global insights ensures we are well-placed to continue developing our already healthy pipeline of new projects.”


As part of Barings’ growth plan in the region, Abhishek Srivastava has been appointed as a Senior Analyst to join the existing team in Sydney. Abhishek was a Senior Associate at Commonwealth Bank covering infrastructure and real estate. Prior to this, he also spent nearly four years at Macquarie Group.


Barings has been committed to investing in the real estate business and expanding the team in the region. It acquired Altis Property Partners, a leading real estate equity firm based in Australia in August. With this acquisition, Barings added 44 investment professionals to Barings’ real estate platform, strengthening the team’s capabilities to underwrite, access and source opportunities across real estate debt and equity. Recently, Altis Property Partners secured equity commitments of A$600 million from two global institutional investors for value-add real estate strategies in Australia.


1 As of June 30, 2022. Including AUM and AUA.

 

Barings Real Estate
Barings Real Estate (BRE) offers a broad range of global investment opportunities across the private debt and equity investment markets. BRE invests in all major property sectors and offers an expansive range of financing solutions to real estate borrowers. Follow us on LinkedIn at www.linkedin.com/showcase/barings-alternative-investments.

About Barings
Barings is a US$338+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment.
*Assets under management as of September 30, 2022

 

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