Barings Makes First Property Sector Move Down Under

US investment manager Barings has entered the property sector in Australia, bankrolling projects for two major players in Sydney and Brisbane.

Barings has agreed an aggregate of $259.3 million loans in Australia, as well as a $120 million loan in New Zealand.

In Sydney, Barings has provided two loans totalling $162.5 million to Scape, the largest student accommodation owner and operator in the country, to fund the construction of two PBSA projects with a total of 517 beds. 

In Brisbane, Barings provided $40.3 million to a five-year, investment phase facility on the recently completed Robertson Lane build-to-rent project in Brisbane’s Fortitude Valley.

Developed and managed by Arklife on behalf of national construction and development company ADCO Constructions, the project comprises 89 rental apartments, 200sq m of office and 140sq m of retail.

Facilities include a gym and wellness facility, playroom, private dining and function areas, rooftop pool, bar and dining areas and parking for 116 cars.

▲ The rooftop pool at the Robertson Lane, Brisbane, build-to-rent tower.

In New Zealand, Barings successfully realised its investment in a $120-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 1375 residential lots and four commercial units in Te Kauwhata, North Island.

The residential lots are 84 per cent pre-sold to the New Zealand government.

“Expanding our loan book to APAC is an exciting and important step in the ongoing growth of our global real estate debt platform, which now has a combined total of more than $US30.6 billlion ($A46 billion) of commitments and we are now actively lending in 14 countries,” head of Europe and Asia-Pacific real estate debt Sam Mellor said.

“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.” 

Barings has this year been investing in the real estate business and expanding the team in the region.

It acquired Altis Property Partners, a real estate equity firm based in Australia in August, adding 44 investment professionals to Barings’ real estate platform.