US fund giant Invesco has provided an A$150 million ($113 million; € 101 million) senior secured loan to AMP Capital to finance a high-rise residential project in Australia.
The loan carries an interest rate between 15 to 20 percent and will be used to fund the development of the Skytower, a 90-story, 1128-apartment tower set to become Brisbane’s tallest skyscraper, sources said. AMP is developing the tower jointly with Australian developer Billbergia.
The investment comes from one of Invesco’s regional opportunities funds, which seeks returns in the high-teens.
AMP fund manager Warwick Petschack told a local publication last year that over 550 apartments had been sold. He said roughly a third of investors were from Brisbane, 20 percent from overseas and the rest from interstate.
In 2011, AMP announced that its Select Property Portfolio No 3 Fund (SPP3) had provided funding to Billbergia for the purchase of the Skytower site.
AMP has an existing relationship with Billbergia in a large waterfront residential development at Wentworth Point, in Sydney’s Inner West.
AMP has A$159.885 billion in funds under management. It specializes in fixed income, equities and multi-asset solutions in the real estate and infrastructure sectors. AMP and Invesco declined to comment.