Barings has expanded its real estate debt activities to Asia-Pacific with three new loans in Australia and New Zealand amounting to over A$320.4 million (US$212 million).
In Australia, the firm has agreed an aggregate of A$259.3 million in loans. The deals include two loans totalling A$162.5 million to Scape for the construction of two purpose-built student accommodation projects in Sydney with a total of 517 beds.
Scape's student accommodation project in Kensington, a suburb in southeastern Sydney.
Barings also provided a five-year, investment-phase facility amounting to A$40.3 million for a recently completed build-to-rent project in Brisbane.
Developed and managed by Arklife on behalf of national construction and development company ADCO Constructions, the project comprises 89 rental apartments, 200 square metres of office and 140 sqm of retail.
The property benefits from high-quality onsite community facilities, including a gym and wellness facility, playroom, private dining and function areas, rooftop pool, bar and dining areas and parking provisions for 116 cars.
In New Zealand, Barings successfully realized its investment in a NZ$130 million (US$81.36 million) loan to Winton Land, a listed developer with large-scale projects across New Zealand and Australia, to fund the remaining site works and subdivision of 1,375 residential lots and four commercial units in Te Kauwhata, North Island. The residential lots are 84% pre-sold to the New Zealand government, which has an AA+ S&P credit rating.
Sam Mellor, head of Europe and Asia-Pacific real estate debt, notes that the firm’s global real estate debt platform now has a loan book of more than US$30.6 billion of commitments across 14 countries.
“All three loans have strong ESG credentials and the sponsors are highly regarded leaders in their markets, while residential real estate in Australia and New Zealand offers an attractive supply-and-demand dynamic,” he adds.
As part of its growth plan in the region, Barings has appointed Abhishek Srivastava as a senior analyst to join the existing team in Sydney. Srivastava was a senior associate at Commonwealth Bank covering infrastructure and real estate. Prior to that, he spent nearly four years at Macquarie Group.