Merricks Capital provides innovative investment solutions that deliver consistent performance for its investors while operating with financial discipline and prudent risk.
Our investment strategies include private credit across commercial real estate, agriculture and infrastructure and specialised industrial.
Established in 2007, Merricks Capital delivers a truly differentiated multi-strategy offering, with extensive investment capability and global experience spanning multiple asset classes.
Melbourne Apartment Supply demand to balance in 2022
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Last week we had some investors question if we were being too optimistic about the potential supply deficit of new apartments in Australia in the coming 2-3 years.
There were questions regarding our exposure to Melbourne apartment developments which have seen the biggest demand “airgap” due to COVID-19 and net migration outflow (chart 1) which is causing pricing weakness.
Our current portfolio only has exposure to one Melbourne CBD apartment development which is due to be refinanced on May 30, however we are actively pursuing several residual apartment loans.
There is currently much more new development activation in Sydney, and this is reflected in new loans in due diligence.
With a scarcity of new off-the-plan sales and apartment activation in Melbourne we outline the case below that existing stock will be well absorbed over the coming years.