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%.

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.

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”

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.

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.

MaxCap Group, Australia’s leading real estate financier has arranged a first mortgage construction funding facility for a luxury residential development on the Golden Mile strip of Labrador, continuing its strong growth trajectory in Queensland.

Eve Residences located at 180 Marine Parade ‘Eve Residences’ will comprise of 157 apartments over 25-storeys including a private rooftop club incorporating a resort style infinity pool, spa, sauna, gym, landscaped gardens and barbecue pavilion located at ground level.

Labrador is considered to be the gateway to the Gold Coast’s northern suburbs, 74km south east of Brisbane CBD. The property benefits from immediate access to the Broadwater and Broadwater Parklands and is located close to key hospitality and lifestyle destinations including SeaWorld and Marina Mirage opposite across the Broadwater, and Broadbeach and the Star Casino to the south.

“We are delighted to be partnering with an experienced developer Ron Bakir, Director Homecorp on this exemplary project. There has been strong demand for the luxury apartments, designed by award winning architects DBI International and being built by Hutchinson Builders.” said Mr Greg Anderson, MaxCap Associate Director, Investment – QLD

Demand for luxury residential apartment product across the Gold Coast region has been exceptionally strong over the past 12 months. Eve Residences targets the owner occupier luxury downsizer market and it has been exceptionally well received to date with only 5 remaining apartments available.

Homecorp Property Group was founded in 2004 and has established itself as a leader in residential urban property development and master planned communities. Since its inception, Homecorp has developed and sold over 3,500 lots across 19 projects throughout Queensland, New South Wales, Western Australia, and South Australia.”

The final GRV of the project is expected to be $150m. Construction started in March and completion is expected to be in early 2024.

MaxCap Group, Australia’s leading real estate financier has expanded its relationship with prominent Melbourne developer, Milieu and their development partner, Penfold. MaxCap and Milieu have entered into their second joint venture partnership to deliver a boutique residential project in the highly sought after Melbourne suburb of Malvern.

Located on a prime corner site in the blue-chip suburb, the No.1 Plant Street project will offer 23 apartments expected to appeal to a broad cross-section of the local owner-occupier market including singles, couples and downsizers who have remained highly active in the market through the pandemic.

Milieu co-founder and managing director Michael McCormack said the company is committed to fostering a sense of community through thoughtful design that aims to resonate strongly with owner-occupiers in the area.

“We create spaces that seek to have a positive influence on daily life, both inside and out. As with all our projects, our design approach will aim to foster connection, explore innovation, cultivate the everyday culture of design and enable a well-lived life for people who live in the area” said Mr McCormack.

“We’re also really looking forward to working with our friends at Penfold who know the target market well given their extensive experience and background and we are sure this will be a defining project for Malvern, located just 8 km from the CBD and offering excellent access to amenities on Malvern Road, public transport and elite schools,” added McCormack.

Simon Hulett, MaxCap’s Head of Direct Investment said, “It’s fantastic to be entering into another joint venture with the Milieu team – repeat business demonstrates genuine trust. Milieu’s experience and unique brand positioning allows them to profile and target their buyers with a high level of sophistication. They understand market needs and deliver product which, as we have seen on previous projects, attracts strong buyer interest and premium pricing.”

For MaxCap Group, this latest joint venture contributes to the continued rapid growth of its Direct Investment business.
“Our Direct Investment portfolio continues to grow in a highly strategic and deliberate direction with a focus on partnering with the best private developers around the country. Groups of the calibre of Milieu provide a strong validation for the sophisticated and diligent approach we take with our joint venture partners,” Mr Hulett added.

Still to be confirmed are the details of a sales launch, likely commencing at the end of 2022.

MaxCap Group, Australasia’s leading Real Estate financier, has provided a $29.3 million first mortgage construction facility to Two Hotel Pty Ltd for the construction of the upscale Vibe Hotel Adelaide, the flagship hotel in the ‘Paris end’ of Adelaide and the final stage in the 10-project Flinders Street Precinct.

Designed by multi-award winning Loucas Zahos Architects and development managed by GuavaLime, the 18-storey glass fronted Hotel will feature 123 luxuriously appointed guest rooms offering floor-to-ceiling windows, spa, sauna and – in an Australian first – a ‘pool bridge’ that connects the Hotel to the neighbouring ONE Apartments.

The first Vibe hotel in South Australia, Vibe Hotel Adelaide will be operated by leading Australian and international hotel operator TFE Hotels (Toga Far East Hotels) and act as a focal point and springboard for visitors experiencing Adelaide, minutes from Rundle Mall, Victoria Square, Adelaide Casino and the Convention centre.

Research from Knight Frank supports the positive outlook for the project, finding strong resilience of the Adelaide hotel to the impacts of COVID-19 by virtue of its greater domestic market reliance (compared to other states) and a general lack of quality hotel stock. With an expected completion date in late-2022, Vibe Hotel Adelaide is expected to take advantage of these conditions and benefit from its unique, elegant architecture and interior design.

Commenting on the project MaxCap Group, CIO Bill McWilliams said “GuavaLime is a reputable sponsor with sound track-record and highly experienced management team. MaxCap is pleased to be providing funding to them for this well designed hotel managed by a leading operator in Toga Far East, as we continue to increase our market share in the Adelaide market”.

GuavaLime Director Con Zahos commended the speed and professionalism with which MaxCap picked up and supported the project. Vibe Hotel represents a milestone concluding project that GuavaLime has managed for over 20 years in the east end of Flinders Street in Adelaide. On completion will now allow the important final street activation phase to be curated and finalised.