APG Grows MaxCap, Aussie Real Estate Debt Exposure

By Mario Marroquin

Australian commercial real estate firm MaxCap Group secured a $600 million commitment from Dutch pension APG this week. APG agreed to exercise an option it secured in 2019 and invested a second tranche of $300 million for first mortgages across all real estate assets in MaxCap’s portfolio.

“The withdrawal of the four major Australian banks from commercial real estate debt exposure is causing a lack of supply of new residential units,” Graeme Torre, APG’s managing director and head of real estate, Asia Pacific, said in a statement. “By assisting developers proceed with their construction, we are indirectly supporting the Australian residential sector by increasing the supply of new units.

“APG and MaxCap also lend to industrial, retail, office and hotel development projects, but these are less common.”

MaxCap agreed to an additional $1.2 billion re-up option for APG, which increased its investment on behalf of its pension fund clients ABP, SPW and PPF APG.

According to Australian publisher AFR, APG’s funding is behind the development of the Pienza Neutral Bay Village development in North Sydney.

The Australian real estate investment firm sold a 50% stake of its business to Apollo Global Management in September.

As of June, APG’s AUM stood at EUR 553 billion ($570 billion).