Private Credit Lenders Chase Growth in Australia Real Estate

Private credit lenders including Apollo Global Management-backed MaxCap Group and Pallas Capital are targeting a bigger slice of lending to Australia’s commercial property sector as banks curtail their exposure after tighter capital regulations.

“We are looking at a total commercial real estate market size of around A$500 billion and it’s a great opportunity for all the non-bank firms and private credit houses,” said Bruce Wan, head of research at MaxCap. “These avenues have helped non-bank lenders double their asset size in the last three years.”