Why MaxCap believes a golden age for real estate debt is upon us
"We're in potentially the largest undersupply of housing in this country since the Second World War", says Rob Hattersley from MaxCap Group.
Couple that undersupply with a funding gap created by regulatory impositions on the big banks, and there is a massive void to be filled in commercial real estate debt.
The MaxCap Investment Trust seeks to fill that void, and the group is very bullish on the long-term opportunity. But it is also mindful of the near-term issues around commercial real estate. How do they solve that problem? Specialisation.
MaxCap is solely focused on real estate lending and has a decentralised model, whereby across Australia, they have experts in real estate on the ground. This allows them to understand the borrower and the builder, conduct the necessary due diligence, and only select the opportunities they find favourable.
It is a formula that has worked so far. In 17 years of operation, MaxCap has done more than 650 deals and claims to have never lost a dollar of capital.
In this Fund in Focus, MaxCap Group's Head of Capital, Rob Hattersley, explains more about the MaxCap Investment Trust, the types of opportunities it pursues, the outlook for the property market, and why MaxCap believes we're entering into the "Golden age for commercial real estate debt".
This interview was filmed on Tuesday 13 February, 2024
Time Codes
- 0:00 - Intro
- 0:21 - The MaxCap Investment Trust
- 3:00 - Challenges in commercial real estate
- 4:23 - What do the next 12 months look like?
- 6:23 - How big could the opportunity become?
- 7:44 - The major drivers of growth (immigration and lack of supply)
- 8:50 - How investors can get involved
MaxCap Group is a commercial real estate investment specialist
To find out more about Australian Commercial Real Estate investment opportunities, please talk to our team today at mit@maxcapgroup.com.au or visit our website here.
3 topics