Invesco commits $113m for Australian ‘Skytower’

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.

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.

Sky-Tower-1The 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.

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