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Warburg Pincus backs MA Financial Group with A$490 million commitment to the real estate credit venture in Australia Oct 17, 2024
- This commitment follows MA Financial Group's recent announcement of the launch of a A$1 billion+ Real Estate Credit Vehicle to provide investors unique access to Australia’s real estate credit market.
- Leveraging MA Financial Group’s A$4.6 billion established track record in private credit and Warburg Pincus’ nearly 60 years of investing experience globally, the Real Estate Credit Vehicle is well-positioned to address the funding gap in Australia’s acutely undersupplied residential housing market.
Singapore/Sydney, October 17, 2024 – Warburg Pincus, a leading global growth investor, today announced it has committed A$490 million, through its Warburg Pincus Asia Real Estate Fund (“WPARE”), to back the A$1 billion Real Estate Credit Vehicle announced earlier, to address the persistent funding gap within Australia’s acutely undersupplied residential housing market.
This commitment further exemplifies Warburg Pincus’ conviction in the investment opportunity set of providing credit solutions to address the funding gap in Australia’s undersupplied residential market, as well as its confidence in MA Financial as the right operating partner to execute the strategy.
MA Financial is a global alternative asset manager specializing in private credit, real estate and hospitality. Leveraging its A$4 billion real estate pedigree and track record, MA Financial will originate and manage real estate credit facilities for high-quality Australian developers and projects for the Vehicle.
Warburg Pincus is one of the largest real estate investors in Asia, co-led by Takashi Murata, co-head of Warburg Pincus Asia real estate, who has 25 years of both equity and credit investing track record in Asia Pacific real estate. Over the past six years, Warburg Pincus has also established its footprint and network in Australia through supporting its portfolio companies including ESR and StorHub, as well as through its WPARE investments in joint ventures – one with Hale Capital Partners focusing on last mile logistics real estate and another with KIO focusing on the Australian build-to-rent sector.
Takashi Murata, Managing Director, Co-Head of Asia Real Estate and Head of Japan at Warburg Pincus, said, “We have built a strong conviction in the secular tailwinds of Australia’s 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. Over 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. With traditional financiers tightening credit, there is an estimated US$37 billion funding gap that needs to be addressed. The new Vehicle will help meet the demand from sophisticated borrowers as Australia tackles its nationwide housing shortage.”
He added, “We are excited to work with MA Financial, a highly experienced operating partner with an established track record in Australia’s real estate credit market. By combining our complementary experience and resources, we believe that the newly established Vehicle is well-positioned to capture attractive financing opportunities in Australia’s residential build-to-sell sector.”
Julian Biggins, MA Financial’s Joint Chief Executive Officer, said, “We are delighted to have Warburg Pincus as an investment partner in our Australian Real Estate Credit Vehicle. Warburg Pincus’ investment serves as a strong endorsement of MA Financial and reinforces their confidence in our real estate investment and debt structuring capabilities. With 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’s potential for future success. We look forward to leveraging Warburg Pincus’ investment experience and resources to support deal origination, management, and investment decisions.”
About Warburg Pincus
Warburg Pincus LLC is a leading global growth investor. The firm has more than $83 billion in assets under management. The firm’s active portfolio of more than 225 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Since its founding in 1966, Warburg Pincus has invested more than $117 billion in over 1,000 companies globally across its private equity, real estate, and capital solutions strategies. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore.
Warburg Pincus has been investing in Asia real estate companies and platforms for nearly 20 years. lt is one of the largest and most active investors in Asia real estate, with over US$8.5 billion invested in over 50 real estate ventures, including some leading regional platforms that Warburg Pincus co-founded alongside best-in-class entrepreneurs such as ESR, StorHub, Princeton Digital Group, amongst others. For more information, please visit www.warburgpincus.com
About MA Financial Group
MA Financial Group is a global alternative asset manager specialising in private credit, real estate and hospitality. We lend to property, corporate and specialty finance sectors and provide corporate advice.
We invest and manage A$9.7 billion on behalf of our clients, are responsible for A$121 billion in managed loans and have advised on over A$120 billion in advisory and equity capital market transactions.
We have over 700 professionals across locations in Australia, China, Hong Kong, New Zealand, Singapore and the United States.
For more information, please visit https://mafinancial.com
Media Contacts
Warburg Pincus
Lisa Liang
Senior Vice President, Asia Head of Marketing and Communications, Warburg Pincus lisa.liang@warburgpincus.com
MA Financial Group
Jeremy Steven
+61 432 798 078
jeremy@honner.com.au