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Launch of the MaxCap Diversified Opportunity Fund

Apr 6, 2022
Diversified Opportunity Fund

Launch of the MaxCap Diversified Opportunity Fund
– Prime assets and high returns seed $250m equity fund
First close oversubscribed

6 April 2022, Sydney – Leading Australian commercial property financier, MaxCap Group, has reached first close on its second unlisted wholesale equity fund, the MaxCap Diversified Opportunity Fund (MDOF).

The first tranche of capital raising was oversubscribed at $125m (target was $100m) with many of MaxCap’s existing local HNWI investors and family offices showing high demand for the product. MaxCap has now increased the target size of the Fund from $200m to $250m with a second tranche of capital to be raised in Q3 2022.

MDOF provides investors with an opportunity to gain exposure to high quality Australian real estate development and value add opportunities through joint venture partnerships with Australia’s leading developers. It is a closed-ended 5-year fund targeting a strong risk-adjusted return to investors of 18%.

MDOF will invest in opportunities through a range of equity and high yielding debt structures. A highly select group of quality assets – in partnership with well-credentialled private developers and asset owners – will form a resilient portfolio that is diversified by development partner, asset class, geography and investment structure.

This latest launch follows on from the success of MaxCap’s first unlisted wholesale equity fund, the MaxCap Industrial Opportunity Fund (MIOF) which has raised over $100m, acquired five industrial and land assets and currently forecasting a return to investors in excess of 20%.

Fund Concept

Simon Hulett, MaxCap’s Head of Direct Investment said, “The genesis of MDOF was borne out of the strong performance of our $400m Direct Investment portfolio during the pandemic. Our existing portfolio is diversified across all traditional asset classes and geographies which bred resilience through the pandemic. We recognized the opportunity to provide our investors with a product that offers them the same resilience, combined with a very strong return profile.”

“In parallel, we secured and closed three seed deals and we are currently in exclusive due diligence on four further opportunities that would take the capital allocated to over $120m. Our pipeline is very strong based on MaxCap’s longstanding reputation as a leading capital partner to prominent Australian developers and property owners.” Mr Hulett added.

Currently MDOF has secured three highly attractive developments in Melbourne and Brisbane.

Key Seed Assets – MaxCap Diversified Opportunity Fund

Centennial Property Group – 142-172 Sherbrooke Road, Willawong, Brisbane QLD

In MaxCap’s first joint venture with Centennial Property Group, we will develop a $100m institutional-grade core industrial and logistics park in the rapidly growing southern corridor of Brisbane. The proposed development comprises over 30,000sqm of high quality, high clearance, modern warehouse and office units across multiple buildings, with flexible facilities that can be adapted to meet market demand for tenancy sizes. The Willawong precinct is highly land constrained and attractive for occupiers given its proximity to the CBD, Logan, Gateway, and Ipswich Motorway’s, making it popular with general logistics, warehousing and manufacturing occupiers of various sizes.

Paul Ford Executive Director and CEO of Industrial & Logistics said “We are looking forward to progressing our partnership with MaxCap, which has provided support for us to secure this off-market transaction and will enable us to continue to execute our niche “mid-space strategy”

Time & Place and Hickory, The Queensbridge Building, Southbank, Melbourne VIC

The development of a $400m mixed-use tower comprising 367 residential apartments and a 202-key hotel in Southbank, Melbourne. The site is ideally located in the inner Melbourne suburb of Southbank, directly adjoining the Melbourne CBD from the South with outstanding access to transport, amenities, parks, recreation and entertainment.

With long-standing and trusted relationships already existing between MaxCap, Time & Place and Hickory, the partners continue to redefine the Melbourne skyline through another major project.

Neometro, Domain Precinct, South Yarra, Melbourne VIC

An exclusive development of ten ultra-luxury residences nestled in the leafy enclave of the Domain Precinct, just steps from the Royal Botanic Gardens, this unique offering will redefine luxury living.

This will be the third joint venture between MaxCap and Neometro highlighting the quality of the relationship and the trust between the groups.