(Reuters) – Private equity firm Warburg Pincus said on Thursday it has committed A$490 million ($327.96 million) to Australia’s MA Financial Group’s real estate credit vehicle in a bid to fund the country’s undersupplied residential housing market.
MA Financial, which is the Australian affiliate of investment giant Moelis (NYSE:MC) & Co, had earlier announced that it would work together with Warburg.
The commitment by Warburg comes at a time when Australian firms, including property company Dexus, have all raised real estate credit funds in the country to tap the housing market.
“Over the next five years, the cumulative dwelling shortage is projected to reach approximately 254,000 units, alongside an anticipated 30% increase in annual population growth,” said Takashi Murata, managing director and co-head of Asia Real Estate and head of Japan at Warburg Pincus.
The private equity firm has over $83 billion in assets under management, according to its website, and operates an active portfolio of more than 225 companies.
($1 = 1.4941 Australian dollars)