MaxCap Group and joint venture partner Time & Place are capitalising on the rapid growth in prime industrial land values through the sale of 2 Christina Rd, Villawood in Sydney’s inner west to Brookfield.

Acquired in May 2021 by the MaxCap Industrial Opportunity Fund (MIOF), the rare 12.6ha land parcel has been sold to Brookfield on behalf of its core plus mandate with a planning permit for 70,000sqm of prime-grade, environmentally sustainable logistics facilities. The estate will be worth an estimated $350 million upon completion.

Located off Woodville Rd, which links the major arterial M4 and M5 freeways, the property offers excellent access to Sydney’s key transport networks and train stations, providing key connectivity nodes for the future workforce. The Villawood site was the fifth asset acquired by the MaxCap fund and is located in an established industrial precinct that is very tightly held. There is a huge amount of demand for quality industrial and logistics products and a major shortage of supply in all the major markets, especially Sydney, driven primarily by the availability of land.

Simon Hulett, Head of Direct Investment at MaxCap Group and MIOF Portfolio Manager, said the divestment of the site was aligned with the trading nature of the Fund and highlighted the unique capability and expertise of the MaxCap and Time & Place joint venture partnership.

Mr Hulett said: “When we launched MIOF in 2019 with Time & Place, the investment thesis centred around taking advantage of the structural shift in Australian industrial land markets, specifically the growth that we forecast in industrial land values in core locations. It was about buying well, adding value, and opening up divestment options through development, subdivision or englobo sale. Villawood is a prime example where we bought land extremely well in a super prime infill location in Sydney – the tightest market in the country. It was a complex site to acquire given its background but it was this complexity that created the value and the Time & Place team did an outstanding job of managing this. It’s a terrific outcome for our Fund’s investors.”

Chris O’Keefe, Director of Time & Place Commercial added: “We were initially attracted to the Villawood site due to its accessibility to major transport networks, size, and location. Consistent with the mandate of MaxCap and Time & Place industrial fund, we are delighted to have added value through acquiring development approvals, and to have found a high-calibre purchaser in Brookfield to take the site forward within its industrial portfolio. As the demand for industrial lots across the east coast of Australia continues to grow, we are passionate about acquiring sites like this that we are confident will deliver long-term value in a rapidly shrinking market.”

Brookfield Head of Real Estate Investments Ruban Kaneshamoorthy also noted the significance of the site’s location. He said: “We are pleased to have acquired our first Sydney logistics asset in the important central western Sydney hub of Villawood providing an optimal middle and last mile logistics offering to eCommerce retailers looking to service their customers.

“There is a scarcity of such facilities in Sydney’s infill market and this asset will help relieve some of those supply constraints while offering strong connectivity to key transport and road infrastructure. We look forward to working with Time & Place on this investment and expanding the relationship.”

The proposed logistics estate brokered off-market by CBRE is due for completion in Q1 2024.

MaxCap Group, one of Australia’s leading real estate financiers has provided a first mortgage land and construction facility to Orchard Piper to provide end to end funding of its upcoming mixed-use project in Toorak Village, one of Melbourne’s most affluent inner-city suburbs.

The project, on the corner of Toorak and Mathoura Roads, will include the demolition of an existing buildings and redevelopment over a 3-level basement car park of 10 luxury 3-4 bedroom apartments, 3 ground floor retail spaces and 3 levels of commercial office space. The project will boast panoramic views of the CBD and surrounding Toorak area.

The Toorak Village precinct is undergoing a major upgrade with many new developments underway and a streetscape revamp in 2023. The village offers a wide range of amenities, including retail, office and commercial businesses in close proximity to Melbourne’s best schools, park land and recreation, all within 1.5km of the CBD.

Toorak is Melbourne’s most prestigious suburb, with residential real estate prices representing the top end of value ranges in Melbourne and home to some of the States most significant landholdings.

“Orchard Piper is an award-winning developer with extensive experience and an excellent brand in Melbourne and specifically the Toorak market. We are delighted to partner with them on this development,” said Johnny Woodhouse, MaxCap State Director – VIC.

Subject to development approval, construction is expected to commence in mid 2023 with completion in early 2025.

Patrick Kypreos and Matthew Phillips from EGA acting as corporate advisers to Orchard Piper assisted both parties to complete the transaction.

Winton is pleased to confirm it has entered into a binding transaction with MaxCap New Zealand Limited to establish the Winton / MaxCap Medium Density Development Fund (the Fund). The transaction remains subject to the Fund obtaining any consents required under the Overseas Investment Act 2005.

The Fund is a $200m equity investment vehicle that will focus on the acquisition and construction of townhouse and apartment developments throughout New Zealand’s metropolitan centres. Winton will contribute up to $50m of equity to the Fund, with the balance to be contributed by a MaxCap investment vehicle. In addition to the return on its equity, Winton will receive a fund management fee equal to 1% of the funds under management, plus an incentive fee equal to 20% of all profits.

Chris Meehan, CEO of Winton said: “We are delighted to partner with a quality institutional party such as MaxCap and we look forward to developing a lasting relationship. Both parties believe this is an opportunistic time to be entering the market to purchase townhouse and apartment development sites.

The establishment of the fund further diversifies Winton’s capital sources and income streams. MaxCap’s commitment to the fund provides further credence to Winton’s position as New Zealand’s leading residential developer.”

MaxCap Group Co-founder and Executive Director, Brae Sokolski, said, “MaxCap is incredibly proud to be partnering with Winton to deliver this ground-breaking new fund. Together, we’re making a clear statement to the market that we are committed to funding and supporting New Zealand real estate long-term. MaxCap has a long history of successful alignment with leading real estate players and in Winton we are backing an outstanding operator and the pre-eminent residential developer in New Zealand.”

MaxCap Group Australia’s leading commercial real estate financier has announced that Adam Cook has joined its Direct Investment team as director, further bolstering its national presence.

Reporting to Simon Hulett, MaxCap’s Head of Direct Investment, Adam will be responsible for originating new equity investment opportunities with joint venture partners and overseeing transactions in Victoria, South Australia and Western Australia. He will also contribute to product and capital raising strategies, the broader Direct Investment strategy and manage key relationships with industry participants. He will be based in Melbourne.

Adam brings with him more than 17 years of real estate investment and development experience across multiple asset classes. He has held various roles as both developer/investor and financier to equity partners, financiers and government authorities. He joins MaxCap from Wingate Group where he was a director and prior to this, he worked for Australian Unity as General Manager Commercial in their Retirement Village and Residential Aged Care division.

Mr Hulett said “We are delighted to welcome Adam to MaxCap. His background and extensive experience complements our existing team and will add considerable value for our partners and stakeholders.”

“We have established a significant existing portfolio and live pipeline of investment opportunities and the depth of ongoing market opportunity is considerable. We are committed to investing in our platform to support our strategic growth plans and continue to build our capability and capacity to capitalise on this.”