This article is from the Australian Property Journal archive
AUSTRALIA’S fast-evolving non-bank real estate lending sector has seen Centuria Bass Credit secure a new circa-$150 million warehouse facility, with an initial $100 million backing from global investment bank UBS.
The warehouse will exclusively finance first mortgage bridging finance and residual stock loans to real estate borrowers.
It increases Centuria Bass’ assets under management to $1.9 billion, having surged from $270 million in just three years.
Jason Huljich, Centuria joint CEO, said the financing partnership is “testament to the non-bank real estate finance sector’s strong tailwinds and reaffirms Centuria’s conviction in real estate credit funds”, and that Centuria Bass “looks to capture further tailwinds from this sector”.
Centuria Bass was established in 2016 by the joint CEOs Giles Borten and Nick Goh. ASX-listed Centuria Capital Group secured a 50% interest in the business in 2021 and in April this year increased its investment to 80%.
Centuria Bass provides private credit real estate finance throughout Australia and New Zealand with offices in Sydney, Melbourne, Adelaide and Auckland. It has made several key appointments so far in 2024, in Tom O’Donnell, Alex Hayde, Lachlan Tracey, John Kalaf and Peter Callanan.
This is UBS’s first financing commitment with Centuria Bass.
“We are very pleased to have UBS as a financing partner to assist us provide the domestic market with finance on short terms of less than 24 months,” Borten said.
“We are targeting the middle-market real estate finance sector, which is often overlooked.”
Holly Clements, UBS head of leveraged capital markets, ANZ, said, “The non-bank real estate lending sector is a key growth sector in Australia. UBS is pleased to be partnering with Centuria Bass to provide this financing and support their further growth in this important market.”
Earlier this month, global fund manager PGIM Real Estate launched its first real estate debt strategy down under, which has raised $300 million for its first fund and is on track to hit a target of $750 million.
Australian banks grew their commercial real estate loan books at 5.1% year-on-year – the slowest annual rate in four years, and non-bank lenders are looking to fill the breach.
Leading the rush is David Di Pilla’s HMC Capital, which harbours aims to build a $5 billion private credit platform and has just acquired commercial real estate private debt fund manager Payton Capital in a $127.5 million deal.
That was quickly followed by $12.2 billion specialist alternative investment manager Regal Partners acquiring Adrian Redlich’s commercial real estate lending business Merricks Capital for $235 million.
