MaxCap Group will provide construction funding for a AU$120 million (US$85.3 million), 20-story mixed-use residential building in South Melbourne, as non-bank lenders continue to up their share of the debt market.
MaxCap will finance the development and construction costs of an under-construction project at 39 Park Street in South Melbourne, developed by Milbex Group.
The CHT-designed tower, to be known as Park Avenue, comprises 160 apartments with a mix of one, two and three-bedrooms and two retail units.
Across residential development projects nationally, major banks’ exposure has fallen 10 percent in two years, with many developers turning to non-bank lenders for construction finance or even equity investments.
“These are clearly interesting and challenging times in the market,” Milbex Group director Michael Vil said.
“MaxCap has remained steadfast in its approach to sticking by its clients and has provided unwavering support in arranging funding for our Park Avenue project.”
MaxCap, which has committed upwards of $1.5 billion in funding to large-scale construction projects since the onset of the pandemic, said it had decided to back the project based on its locality and high-end amenities.
“We believe there is significant opportunity in this part of Melbourne, with Park Avenue designed to cater for young professionals, downsizers and sophisticated investors,” MaxCap Group co-founder Brae Sokolski said.
The building will feature amenities including a wellness center, gymnasium, sauna and concierge.
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