MA Financial Group

In an interview with The Australian’s Matt Bell (‘Government efficiency needed in construction as building costs start to ease’), our Head of Real Estate Credit Drew Bowie explains why increased hurdles in getting building approvals are driving up construction costs and threatening the viability of affordable housing in Australia, despite easing in building materials costs.   High costs are making it hard to build affordable housing, with many developers pivoting towards luxury projects where it’s possible to recoup costs and turn a profit. This makes the government’s target of building 1.2 million homes by 2030 challenging.   “We need to look at how we improve turnaround times on DA, on construction certificates and all the paperwork that needs to be done between starting a project and completing it.” Drew says it’s common for a developer to be asked to address over 100 conditions for one development application, resulting in significant expenses. “We’ve got to look at how the government plays its part in creating more efficiencies to ensure we get more built.”   Analysis of ABS data by Drew and the team shows building materials price rises have now moderated after supply chain disruptions in 2021/22 resulted in construction costs surging by more than 15% – the highest increase since the first OPEC oil price shock in 1973/74.   “Material costs are not having a significant bearing on project delivery starts anymore, with inefficiencies more of a concern for the sector. We recognise that construction is only one element of project risk. This normalisation of construction cost increases provides a greater level of confidence for project builders, for developers and lenders in unlocking this housing supply crisis.”   http://bit.ly/4fiWeMV

There has been plenty of negative news around office markets lately, but it’s not all doom and gloom. In our latest instalment of Taking Stock, Managing Director Edward Day explains why office prices may have reached an inflection point. While downward pressure on rents and record rises in construction costs limit new supply, Ed explains that Australia’s growing population will underpin demand for office space in the medium term. We’re already seeing this trend in Brisbane, where effective rents have increased by more than 20% over the past 12 months.   #Investing #Finance #CommercialRealEstate #takingstock

We are proud to have acted as exclusive financial advisor to George Weston Foods (GWF) on their acquisition of The Artisanal Group (“TAG”), a national multi-brand artisan bakery platform encompassing Noisette, Brasserie Bread and Jaune, from Next Capital   GWF is one of Australia and New Zealand’s largest food manufacturers, employing close to 7,000 people across nearly 50 sites. It owns many of Australia and New Zealand’s favourite brands including Tip Top, Abbotts, Golden and Burgen bakery products, Yumi’s dips and vegetarian foods and Don smallgoods. Brodie Treloar, Managing Director in our Corporate Advisory team, said “We enjoyed working with the highly professional team at GWF, one of the leading food manufacturers in Australia and New Zealand, to help them add a new growth platform” Samuel Japary Maria Lagana

What is driving the rapid growth in demand for private credit, and why might now be the optimal time to invest? In this insight, our Head of Credit Investments and Lending Frank Danieli explores why private credit is an attractive alternative to improve returns and reduce portfolio risk in an era of higher interest rates. This is the second insight in a four-part Private Credit Investment Series where Frank delves into this dynamic asset class exploring the wide range of opportunities available for Australian investors.

MA Moelis Australia is proud to have acted alongside Moelis & Company, as financial advisors to Accolade Wines on its recapitalisation and purchase of Pernod Ricard’s Australian, New Zealand and Spanish wine business. Paul Rathborne Brodie Treloar Richard Draper Alister Harper James Sandelin Rohan Choudhary Andreas Televantos Stef Leers Gustav Ravn

Tune into our podcast, What Matters, to stay informed. Earlier this year Moelis & Company Vice Chairman and former House Majority Leader Eric Cantor spoke with our Vice Chairman Andrew Pridham AO about the upcoming US Election, where Eric made an early prediction on Donald Trump’s US Vice-Presidential running mate. What Matters is available on Spotify and Apple Podcasts. Be sure to never miss an episode by subscribing and following today. 

Private credit is a rapidly growing asset class in Australia. It is gaining market share as investors seek a defensive allocation and to diversify away from public market volatility, while delivering outstanding risk-adjusted returns in credit investments that are secured, collateralised or otherwise have strong downside protection features. In this insight, our Head of Credit Investments and Lending Frank Danieli breaks down the fundamentals of private credit, its key benefits, and the diverse market segments it encompasses. This insight is the first in a four-part Private Credit Investment Series where Frank delves into this dynamic asset class exploring the wide range of opportunities available for Australian investors.

What’s the first step in successful family succession planning? Walsh Bay Partners Chairman Arun Abey AM, a trusted advisor to some of Australia’s most successful family offices and individuals, shares his expertise on holistic family strategies. Arun recently joined our co-founder and Vice Chairman Andrew Pridham AO, and The Barefoot Investor Scott Pape, on our What Matters podcast.    In this episode, Arun and Scott discuss strategies for managing money, raising children and finding happiness in the cyber age. Don’t miss this insightful and inspiring episode, available now. 🎧 Listen to the episode on Spotify and Apple Podcasts. Stay up to date by subscribing and following What Matters today. https://lnkd.in/g6ikg4Ag https://lnkd.in/gVPzPNEw

Foe or friend: is private credit a threat to Australia’s banks?   In his latest interview with ausbiz’s Andrew Geoghegan our Head of Credit Investments and Lending Frank Danieli discusses the recent Citi report noting the increasing levels of competition major banks are facing from private credit, and how real the threat is for our banks.    Heavy regulation has tightened bank lending activities, creating opportunities for private lenders who can efficiently provide capital to good borrowers.    Frank explains where he sees opportunity for banks and private lenders to see each other as partners rather than competitors.  https://lnkd.in/gUN5-nrS

We’re delighted to be partnering with The Urban Developer to host their inaugural Women’s Leadership Lunch in our boardroom on 15 August.   The event will bring together influential and emerging female leaders from Australia’s construction and development industry.   Taryn Paris will moderate an expert panel of women including Zahava Elenberg, Divya Mehta, Elizabeth Stewart and our real estate credit expert Cathy Houston.