Spotlight on Michael Wood, Chief Executive Officer & Chief Investment Officer, Madigan Capital
Global Thought Leader Spotlight
Michael Wood, Chief Executive Officer & Chief Investment Officer, Madigan Capital
Michael is the Chief Executive Officer and Chief Investment Officer of Madigan Capital. Madigan is a specialist, institutional only real estate debt investment management firm.
Currently based in Sydney Australia, Michael has been in the real estate industry for over 35 years. He is an experienced advisor in real estate investment, construction and funds management, having worked in multiple jurisdictions throughout his career across Asia Pacific, North America and Europe.
Passionate about the potential of real estate debt in a diversified investment portfolio, Michael started Madigan Capital to provide institutional investors a platform to invest in credit instruments secured by real estate and social infrastructure assets in Australia.
In the current investment landscape, the drivers of the opportunity set in real estate debt and the implications for investors can be grouped into four key themes, which are summarised in the following:
Maturing sector – Non-bank lending sector in Australia is a relatively untapped and opaque market. Australian NBL accounts for approximately 10% of all CRE lending in Australia compared to other markets such as Europe (~40-50%) and North America (~50-60%). The maturing of the sector creates an opportunity for investors to participate in a growing sector which has a long runway and ability to deploy at scale as Australia ‘catches up’ in terms of non-bank lending market participation (market share) compared to other regions such as Europe and North America.
Globally/domestically a lack of liquidity – as major banks retreat from CRE lending and rationalise their lending books. The lack of liquidity creates an opportunity for investors to participate in transactions that are backed by high quality collateral, at increasingly attractive returns. Particularly the case in the office sector.
Australian funding gap – driven primarily by the rise in interest rates, investors can ‘fill the void’ that is beginning to open up and secure outsized returns, at relatively conservative lending metrics.
Current real estate market cycle and timing – currently we are in a phase of uncertainty with cap rates expanding, generally across all sectors and valuations still under pressure. CRE debt strategies provide an ability to access the returns from the RE sector, but in a protected position within the capital structure, thus preserving capital as valuations normalise, whilst also diversifying the portfolio.
Michael will be presenting at Global Investment Institute’s upcoming Fixed Income & Alternatives Investment Forum, taking place on Thursday, 7 September 2023 at the Westin Melbourne, Victoria.
To register your interest in attending, click here or for more information email zlatan.kapetanovic@globalii.com.au.
Michael Wood, Chief Executive Officer & Chief Investment Officer, Madigan Capital
Michael is the Chief Executive Officer and Chief Investment Officer of Madigan Capital. Madigan is a specialist, institutional only real estate debt investment management firm.
Currently based in Sydney Australia, Michael has been in the real estate industry for over 35 years during which time he has worked throughout Asia Pacific, the United States and Europe.
Prior to founding Madigan, Michael was a founding partner of an institutional real estate debt investment management firm headquartered in Atlanta, USA and oversaw the investment of more than US$10 billion of capital in the United States, Europe and Australia.
Michael is an experienced advisor in real estate investment, construction and funds management, having worked in multiple jurisdictions across Asia Pacific, North America and Europe over the past thirty years.
Passionate about the potential of real estate debt in a diversified investment portfolio, Michael started Madigan Capital to provide institutional investors a platform to invest in credit instruments secured by real estate and social infrastructure assets in Australia.
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