A new real estate debt fund is looking to capitalise on the pull-back in bank lending to residential and commercial development projects.
Real estate investment manager Qualitas has raised $500 million for the first fund of what it anticipates to be a "multibillion-dollar construction finance program".
Qualitas is looking to "fill a gap created by a pull-back in bank lending" by providing loans of up to $125 million for residential and commercial development projects.
Group managing director of Qualitas Andrew Schwartz said investors are "stepping in to provide fresh capital to the development sector at a time when banks are reducing their lending activities".
"Qualitas has a long history of providing an alternative source of capital for quality projects backed by reputable developers," Mr Schwartz said.
"Our new construction finance fund will provide a much-needed source of capital to developers in a tight credit market, with a focus on quality projects in east coast capital cities.
"With Australia's growing population and the very tight vacancy rates in Melbourne and Sydney, we are especially focused on these markets to provide much needed debt capital to quality projects."
The new fund will be run by Qualitas real estate finance managing director Tim Johansen, who has made two appointments from the banking sector to help oversee the fund.
Mark Power will join Qualitas as director of real estate finance after 17 years at NAB and Gil Norwood will join as director of real estate after nine years at ANZ and seven years at CBA.
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