Australia’s Macquarie Real Estate Partners has invested an undisclosed sum in Melbourne-based private credit manager IDA in a move to tap into growing demand for alternative financing for property development as banks reduce lending to the sector.
Macquarie Real Estate Partners is a unit of Macquarie Asset Management, which announced the investment in a statement on December 18.
It says IDA leverages on growing demand for financing property development amid an undersupply of housing on reduced availability of traditional bank loans, and has provided private credit and financing across more than 100 investments in projects worth over A$5 billion (US$3.11 billion),
According to Macquarie, its real estate unit will provide funding to support the growth of IDA’s private credit platform.
“We believe IDA is well positioned to grow its platform and capitalise on the increasing demand for flexible development financing solutions while offering compelling investment opportunities for its clients,” says James Kemp, head of real estate Asia Pacific at the asset management firm.
Sydney-headquartered Macquarie Asset Management managed around A$916.8 billion of assets as of September 2024.