ICG acquires Australian real estate debt investor Newground

The deal expands ICG’s presence in Australia and will see a new fund launched later this year.

London-based credit manager Intermediate Capital Group has acquired Australian real estate debt investor Newground Capital Partners.

The acquisition will see the business rebrand as ICG-Newground where it will continue to act as an arranger, investor and manager of real estate financing in the Australian mid-market.

Newground has a team of seven professionals led by Daniel Erez and has closed more than 30 transactions worth more than A$200 million ($155 million; €127 million). It has offices in Brisbane, Sydney and Melbourne, and manages investments for more than 100 clients, most of which are based in Australia.

ICG also revealed plans to launch an institutional-focused fund in Q3 this year to capitalise on increasing interest in real estate debt among Australian investors.

Commenting on the deal, Martin Wheeler, co-head of ICG’s real estate business, said: “We are excited about the acquisition of Newground, which is a further positive step in the growth of ICG’s real estate strategy and footprint in Australia. We are looking forward to working with such an entrepreneurial management team to realise the attractive opportunities in the Australian real estate market.”

Erez will become head of real estate Australian New Zealand at ICG said the transactions will enable Newground’s experience in the Australian real estate sector to benefit from ICG’s institutional management infrastructure.