Dutch Courage in Australian real estate debt market

DUTCH asset manager APG Asset Management N.V. has made its first foray into the Asia Pacific real estate debt market with a $600 million commitment to MaxCap Group.

The partnership will target first-mortgage loans, with a focus on construction lending across multiple asset classes. Initial capital has already been deployed to the first seed loan, which is a mixed-use development in Melbourne.

APG manages around €505 billion in assets for pension funds. Across the Asia Pacific, APG manages an €11.6 billion real estate portfolio across private and public markets out of its Hong Kong offices.

APG has pursued real estate debt strategies in Europe and US for over five years is looking to deploy further capital into such strategies across the Asia Pacific region.
“We see the structural shift in the Australian banking sector market dynamics contributing to a convergence of equity and debt returns,” APG managing director and head of private real estate, Asia Pacific, Graeme Torre said.

“A real estate debt strategy therefore offers us the opportunity to access this asset class with an appealing risk /return proposition. We believe that MaxCap, with its on-the-ground knowledge, reputation for responsiveness and proven track record, will be a strong long-term partner for APG.”Wayne Lasky, co-founder and managing director of MaxCap group, said, “CRE debt as an institutional asset class in Australia is in an early cycle and we’re looking forward to a long term relationship with APG to deliver strong risk adjusted returns for its clients and their members.”