BY CHLOE WALKER | FRIDAY, 2 FEB 202
The Melbourne-based alternative investment manager has secured $200 million from an undisclosed US investor, bringing its total facilities and funds under management (FUM) to $7.5 billion.
According to Wingate, the commitment also contributes to a total FUM growth of 42% since December 2022, and an increase in the proportion of FUM managed on behalf of institutional investors.
Wingate managing director, property Nick Jacobson said: “This significant programmatic commitment to co-investing alongside our platform reaffirms Wingate‘s position as a leading Australian alternative investment manager and is a testament to our outstanding 20-year track record, demonstrating the growing interest from institutional investors in the Australian Commercial Real Estate (CRE) private credit sector.”
Jacobson added that the partnership, in addition to its substantial available funding sources, will enable Wingate to capitalise on quality investment opportunities in the local CRE private credit market this year.
The non-bank lender stated that the partnership reflects an increase in international investors who are interested to investing in Australia's private debt market.
“Australia's private financing structures are bank-like and low risk, which, when combined with premium pricing and below-trend currency rates, makes us a comparatively appealing investment destination in comparison to many other developed nations,” Jacobson said.
“At Wingate, we currently see significant opportunity in residential real estate private credit, especially construction lending in the major capital cities, consistent with the macro-thematics of structural under-supply and higher than trend net migration levels.”
Jacobson said that hotel construction lending in the major capital cities also provide an ongoing investment opportunity.
“The stock of existing hotels in the nation's CBDs is largely dated and the level of amenity in them is limited and poor, yet the returns hoteliers are currently making is extraordinary,” he said.