Blackstone Group LP's plan to enter the Australian home lending market is on track with the private equity firm eyeing an early January 2018 launch with a minimum direct lending pool of A$5 billion, The Australian Financial Review's Street Talk blog reported Dec. 14, citing sources.
The firm plans to raise the lending pool to more than A$10 billion, inclusive of senior debt. The private equity firm's new venture would lend directly to buyers that are underserved by the country's banks, such as property investors and offshore-based purchasers of property.
Blackstone reportedly has partnered with several international banks to help fund its plans but will also use its own funds and later seek to refinance senior debt into the international securitization markets.
Blackstone is not the only private equity firm looking to break into the Australian home lending market. KKR & Co. LP, Oaktree Capital Group LLC and Australia-based nonbank lender Pepper have been working on their own mortgage venture called Lotus. The venture will seek loan servicing from Pepper.