This article is from the Australian Property Journal archive
ACTIVE non-bank lender MaxCap Group has acted as lead arranger and financier of JD Group’s long-awaited $250 million apartment development in Melbourne’s inner east, adding to its circa $1.5 billion in commitments during the pandemic.
JD Group acquired the former nursery site back in 2014 for about $30 million. The corner block at 196-202 Burwood covers 7,013 sqm and will be home to a mix of 240 one, two and three-bedroom apartments over a single building of six levels.
To be known as Sierra, it will also feature 1,000 sqm of commercial space and four retail tenancies, and amenities including residents’ dining room, courtyard garden, pool, BBQ and a large rooftop deck.
MaxCap and Goldman Sachs provided the finance for the project, which has an estimated gross end value of about $250 million.
Melbourne-based JD Group has partnered with MaxCap on previous projects. It most recent high density projects include JD The Seasons in Doncaster, completed in May, and Victoriana, at 20-22 Queens Rd, which is due for completion by the middle of next year. The developer has similarly held that site since 2013.
“We are delighted to be funding this high quality development and continue to actively fund credit-worthy projects, providing support to our clients at a critical time,” Brae Sokolski, MaxCap co-founder said.
Among MaxCap’s latest apartment project commitments are the Kokoda Property Group’s The Ambrose development in Milton, Brisbane, and Milbex Group’s $120 million mixed development in South Melbourne.
It has recently closed funding for private developer Blue Earth Group’s Ivanhoe Gardens residential project, which will have an end value of $140 million. That quickly followed its funding of a boutique apartment development in Perth’s Jolimont.
In August, it tipped in $170 million for a 396 apartment project in Melbourne’s Box Hill, after committing to funding the construction of a smaller project in the inner suburbs.
A recent survey of lenders by Stamford Capital showed non-banks have furthered their presence in the real estate debt market. Non-banks are expected to outpace major banks for investment loans, and while there was less optimism for construction lending non-banks showed a greater hunger at 68%, compared to 57% of major banks expecting to maintain or increase.
