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Brisbane-based real estate financier Newground Capital Partners has been acquired by London-listed alternative asset manager Intermediate Capital Group (ICG) for an undisclosed amount. The new business, ICG‐Newground, will offer loans of $30 to $200 million for construction or value-add investment purposes either as first or second mortgages.
As reported in the Australian Financial Review, ICG plans to leverage off existing relationships with institutional investors in Australia and New Zealand and launch a new credit fund in the second half of the year targeting a $1 billion raise, while also pledging $100 million of its own balance sheet funds to underwrite and co-invest in the new venture.
The price paid to acquire Newground has remained confidential, however, according to the AFR, it is understood to have been negotiated on similar terms to Centuria Capital’s acquisition of non-bank lender Bass Capital – Centuria paying $24 million for a 50 per cent share in the business.
Led by Daniel Erez, Newground has completed more than 30 transactions since launching in 2018 and has deployed more than $200 million of capital. Erez has been appointed head of real estate Australia and New Zealand at ICG-Newground.
He said he was looking forward to “combining Newground’s deep experience of investing in Australian real estate, and benefiting from ICG’s breadth of experience, rigorous investment culture and its institutional investment management infrastructure”.
According to the AFR, the deal comes amid a surge in new players in the non-bank sector and heightened competition for deals.
Kate McIntyre is an online writer for Mortgage Professional Australia. She has a wealth of experience as a storyteller and journalist for a range of leading media outlets, particularly in real estate, property investing and finance. She loves uncovering the heart behind every story and aims to inspire others through the artful simplicity of well-written words.
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