Leading Australasian Commercial Real Estate financier and investment manager MaxCap Group has provided a $75 million first mortgage facility to Salvo Property Group to fund the development of its ‘Stature’ project in Melbourne.

‘Stature’ is a 35-level mixed-use tower development comprising 175 apartments, 6 levels of commercial office space (2,300 sqm) and ground floor retail space (150 sqm) located in the Southbank precinct.

The local area has a wide variety of retail, entertainment and education amenities with Clarendon Street retail precinct, South Melbourne Market and Albert Park Lake in close proximity. In addition, Stature is close to Southbank boulevard fronting the Yarra river, including notable venues such as Crown Melbourne and the Melbourne Convention and Exhibition Centre as well as various hospitality and shopping venues. It is well served by public transport and near a number of tram stops and close to Southern Cross and Flinders Street Stations.

Salvo has a demonstrated track record, successfully delivering over $1bn of mixed-use developments over the past decade within Southbank, Melbourne CBD and surrounding area.

Commenting on the project, Johnny Woodhouse MaxCap’s State Director for VIC said

“MaxCap is pleased to be supporting Salvo, one of Melbourne’s premier developers with a first class track record in Southbank. We are excited to build on our long-standing relationship with Salvo. Stature has sold well, has wide appeal in the current market and represents another fantastic development for the group.”

James Maitland, General Manager of Salvo’s Property said “We are excited to be partnering with MaxCap on the funding of our ‘Stature’ project which is set to be a new icon on the Melbourne Skyline.”

Construction has commenced with Maxcon and the project is due to complete by March 2023. The total GRV of the project is expected to be in excess of $125 million.

Leading Australasian Commercial Real Estate Financier and Investment Manager, MaxCap Group is funding the landmark development ‘Awaken Residences” a luxury mixed use development project in Coolangatta, QLD.

The project benefits from a prime location at the top of Point Danger and adjacent to Rainbow Bay Beach, a popular tourist location. It will house eight full floor apartments with 360 degree views, a two-level penthouse, swimming pool and an onsite restaurant and café over 11 storeys.

S&S Group has recently sold-out a nearby $74m development named ‘Flow Residences’, housing 22 luxury apartments located 200m north of the Awaken Project.

Paul Gedoun, Founder of S&S Group said “we have made a deliberate decision to focus on luxury developments targeting high net worth owner-occupiers and investors given strong and continued demand for the product.”

The total GRV for the Awaken Project is circa $48million.

Apollo Global Management, Inc. (NYSE: APO), (together with its consolidated subsidiaries, “Apollo”) today announced that clients managed by its affiliates have entered into a definitive agreement to acquire up to a 45% equity stake in MaxCap Group (“MaxCap” or the “Company”), a leading Australasian commercial real estate (“CRE”) financier and fund manager.

Founded in 2007, MaxCap is ranked No. 1 in CRE Debt* in the Australian marketplace and is headquartered in Melbourne. Following completion of the deal, MaxCap co-Founders Wayne Lasky and Brae Sokolski will continue to lead the company and retain the remaining shareholdings.

The strategic investment will align MaxCap with one of the world’s leading asset managers and enable the business to continue its rapid growth in Australia and New Zealand. The transaction is expected to bolster MaxCap’s access to capital and strengthen its ability to create and deliver innovative lending solutions for borrowers alongside Apollo’s leading credit platform. MaxCap expects to generate significant investment opportunities for its clients, and today has a forward pipeline of more than A$6 billion. Since its founding, the Company has had a strong track record of performance across more than 450 investments totaling more than A$11 billion.

For Apollo and its clients, the investment extends the firm’s reach into Australasia – an attractive market with significant growth in lending opportunities. Currently, Apollo originates commercial real estate debt and equity solutions across North America, Europe and Asia, and through this transaction expects to increase its activity in Australasia.

Wayne Lasky, MaxCap’s Co-Founder and Managing Director said, “We are driven to deliver the highest quality and broadest array of investment opportunities for our clients. This transaction is a key aspect of fulfilling our promise of creating lasting value for them. We look forward to achieving that by leveraging Apollo’s extensive industry expertise, coupled with the capital firepower they bring to the table. This will further enable us to provide compelling solutions for every commercial real estate sector at every stage of the real estate life cycle, and we’re thrilled to join forces with such a highly respected global manager.”

Mr. Lasky emphasised how MaxCap has created a market leading platform and built a high-quality Australasian team. “This partnership is a watershed moment and a key component of our team’s long-term strategic plan. Now we are looking forward to the next phase of MaxCap’ s growth and to delivering further client value together with a partner who shares our vision and strategy,” he said.

Apollo Co-President Scott Kleinman said, “Australia presents significant long-term opportunities for Apollo and we’re thrilled to strategically partner with MaxCap, a leader in the non-bank real estate lending space with a standout reputation. This is an exciting opportunity to expand our origination capabilities, support the strong management team and together leverage our highly complementary platforms and expertise.”

Philip Mintz, Senior Partner, Real Estate at Apollo said, “MaxCap is an industry leader and we’re excited to provide capital and strategic support to help accelerate their business and increase our activity in Australia. The company’s strong track record of origination, its market positioning in Australia and New Zealand, and its performance have made them a partner of choice for investors and borrowers alike. Together we see significant opportunity ahead as the non-bank real estate credit market continues to grow in the region.”

Mr. Mintz noted that the Apollo funds’ investment in MaxCap was the latest extension of its investment origination platforms. It follows a recently announced transaction with Foundation Home Loans, a specialist UK mortgage lender, as well as a strategic agreement with Victory Park Capital in the US to invest in asset-backed credit facilities for emerging companies. Apollo’s strategy to build, buy, and partner with proprietary origination platforms enhances the firm’s ability to source and structure investments for its insurance and institutional clients.

MaxCap is pleased to announce that it has been certified as a Carbon Neutral organisation by Climate Active for its business operations.

The certification is recognition of our efforts to embed carbon reduction initiatives across our operating business including by offsetting carbon emissions. It reflects MaxCap’s increasing focus on sustainability which is a natural extension of our disciplined approach to risk management and our purpose which is to create lasting value for our clients.

The MaxCap team were particularly keen to invest in a local offset project that provides economic, social and environmental benefits to Amhem Land community in the Northern Territories as well as reducing emissions. Amhem Land Fire Abatement (ALFA) is an entirely Aboriginal-owned, not-for-profit carbon farming business created by Aboriginal Traditional Owners in Amhem Land to support their engagement with the carbon industry. AFLA currently supports five fire projects across an area of over 80,000km2. This project involves strategic and planned burning of savanna areas in the high rainfall zone during the early dry season to reduce the risk of late dry season wild fires.

We are pleased to support this non-for-profit which provides local employment and preserves our indigenous culture and the environment.