Private equity group, Monark Property Partners has successfully closed a $50 million Debt Fund that will co-invest alongside its cornerstone investors who have committed an additional $50 million.
The Fund has a broad mandate to deploy capital over three years via senior and mezzanine loans secured by registered mortgages against properties located in Australia. The Fund will seek to provide loans against income producing assets, construction and development projects as well land subdivisions.
Monark Property Partners is a joint venture between industry stalwarts Michael Kark and Adam Slade-Jacobson
and the Boris Liberman Family Office (Jagen Pty Ltd).
Since 2013, Monark has been an active player in the commercial real estate debt market, having provided inexcess of $600 million of capital across a number of boutique residential and mixed use developments, childcare portfolio and industrial subdivisions across eastern Australia.
“It is well documented that the Banks have actively sought to rebalance their exposure to the property sector in the last 18 months. This structural shift has seen the emergence of alternative financiers to satisfy the ever increasing demand of developers who are seeking viable funding solutions. Our Fund is an opportunity for developers to procure alternative finance at competitive rates” says Adam Slade-Jacobson.
Our outlook for the Australian residential property market remains strong, in particular boutique, design-led developments in established blue-chip locations. We are excited to be launching the fund which is the first of its kind for Monark and enables us to significantly expand our footprint in the commercial real estate debt market” says Michael Kark.
Michael Kark says Monark has built a reputation as a trusted manager of third party capital by investing in well considered risk mitigated transactions. This Fund is a strong endorsement from our investors of our lending philosophy and our funding pipeline is healthy and robust which reflects the way we approach transactions with our developer clients.
In line with Monark Property Partners’ success strategy to date, the fund will be focused on supporting projects located predominately in metropolitan Melbourne, Sydney and Brisbane with no more than 10 per cent to be invested into the Western and South Australian markets at any time.