Melbourne-based developer Golden Age Group has secured construction finance from one of Australia’s largest super funds to back its $400 million Park One development in Sydney’s Macquarie Park.
The developer, led by Jeff Xu, has partnered with debt investment manager MaxCap to finance the 20-storey mixed-use project on Waterloo Road opposite the Macquarie Shopping Centre.
Golden Age acquired the site for $101 million in 2016 as part of its push into the Sydney residential market.
The super fund, which the developer and MaxCap declined to identify, has previously partnered with Golden Age to finance its three-building Lachlan Street, Waterloo project.
“We have recently successfully completed and repaid the same super fund from our Waterloo project in Sydney,” Xu said.
Australian super funds are increasingly teaming up with real estate financiers to take advantage of the tightening credit environment.
MaxCap managing director Wayne Lasky said that real estate development is increasingly a stand-alone asset class in institutional portfolios.
“Institutional capital is beginning to flow into the Australian CRE debt market which offers strong risk-adjusted returns,” Lasky said.
Now construction finance is finalised, the 20-storey, 412-apartment tower in Macquarie Park is set to begin construction with sales close to the 90 per cent mark.
In other news for Golden Age, the developer has listed its McKillop Street property in Melbourne with price expectations of around $15 million.
Golden Age had previously flagged plans to develop the former CBD nightclub, picking up the asset for just under $12 million in 2015.
CBRE’s Mark Wizel is marketing the 5-storey building located between Little Collins Street and Bourke Street.
“Laneway properties always attract a high level of interest from prospective buyers as they do from the many tourists who visit them as part of their Melbourne must-see bucket list,” Wizen said.
In other development news, Golden Age recently announced plans to diversify into house and land, flagging a $120 million project in Melbourne’s Rockbank.
In Sydney, Golden Age recently submitted plans for a $76 million luxury hotel in Surry Hills.