- The first tranche of the MaxCap Diversified Opportunity Fund raised $125M - $25M above its target
- Their first such fund raised over $100 million, and is currently on track to return 20% to ivnestors
- The new Fund has three key seed assets; two in Brisbane, other one in Melbourne
Australian commercial financier MaxCap Group has today announced it has reached first close on its second unlisted equity fund.
The first tranche of the MaxCap Diversified Opportunity Fund (MDOF) was oversubscribed at $125 million – well above its $100 million target. Many of the financiers local high net worth investors and family offices saw strong demand for the product.
Due to this, MaxCap has now increased the target size of the Fund from $200 million to $250 million, with the second tranche to be raised in Q3 2022.
MDOF gives investors an opportunity to gain exposure to Australian real estate developments and value add opportunities though joint venture partnerships. It is a 5-year closed-ended fund targeting an 18% risk-adjusted return to investors.
The financier’s first unlisted wholesale equity fund, the MaxCap Industrial Opportunity Fund (MIOF), raised over $100 million, acquiring five industrial and land assets. Currently, it forecasting a return to investors above 20%.
Simon Hulett, MaxCap’s head of Direct Investment, said the genesis of MDOF was born out of the $400m Direct Investment fund’s performance during the pandemic.
“Our existing portfolio is diversified across all traditional asset classes and geographies which bred resilience through the pandemic,” said Mr Hulett.
“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.
Simon Hulett, MaxCap head of Direct Investment
“Our pipeline is very strong based on MaxCap’s longstanding reputation as a leading capital partner to prominent Australian developers and property owners.”
Seed assets
Currently, MDOF has secured three developments in Brisbane and Melbourne as its key seed assets.
Time & Place and Hickory, The Queensbridge Building, Southbank, Melbourne VIC (featured image).
The $400 million mixed-use tower will consist of 367 residential apartments and a key hotel in Southbank, directly adjoining the Melbourne CBD. MaxCap already has a strong relationship with Time & Place and Hickory.
Centennial Property Group – 142-172 Sherbrooke Road, Willawong, Brisbane QLD
In the financier’s first joint venture with Centennial Property Group, the duo will develop a $100 million institutional-grade core industrial and logistics park in Brisbane’s southern growth corridor.
It will be home to over 30,000sqm of high quality, high clearance, modern warehouse and office units across multiple buildings. The Willawong precinct is land constrained, this the duo expect it to be popular with logistics, warehousing and manafacturing occupiers wanting close proximity to the CBD, Logan, Gateway and Ipswich Motorway’s.
Neometro, Domain Precinct, South Yarra, Melbourne VIC
Lastly, the third seed asset is an exclusive development of ten luxury residences in Domain Precinct, near the Royal Botanic Gardens. This is the third joint venture between MaxCap and Neometro.
