CC Real identified Madigan Capital as a promising partnership to capitalise on the opportunities that will arise with the anticipated rise of the non-banking debt capital market.
Overview
- In 2021 CC Real entered the Australian non-bank lending market, acquiring 50% of Madigan Capital.
- Madigan Capital manages over AUD $1 billion of funds on behalf of Australian institutional investors, investing in non-bank Corporate Real Estate (“CRE”) debt.
- This is a joint venture with the management team and CC Real Investment Arm.
- CRE debt is an alternative access point to the real estate sector.
- Unlike the US, for example, the Australian market has historically been dominated by the traditional banks.
- Borrowers appreciate the flexibility, speed & certainty that Madigan Capital provides as an alternative lender.
Strategy
- Lend against quality assets to enable their acquisition, refinance, repositioning & construction.
- Deliver an equity like long-term return but with lower volatility and with downside protection.
- The venture diversifies CC Real both geographically and across the real estate capital stack, supplying valuable market insights through the property market cycle.
