IDA Managing Director, Adam Kaye, has been quoted in the Green Street News: Australia today after providing his thoughts on ASIC’s ‘Advancing Australia’s regulatory roadmap for public and private capital markets’ discussion paper.

Whilst we know that Australia’s debt capital markets already benefit from strong self-regulatory practices, for the CRE private credit sector to grow into a permanent and significant part of domestic credit supply, regulatory oversight is essential. It will ensure that capital will continue to flow with confidence in governance, transparency, and compliance.

“We measure current market share for AUD CRE private credit at or around ~18% of total CRE credit supply versus ~38% in the UK and ~48% in the US on a like for like basis. That suggests we are still less than half-way to maturity if our CRE private credit market ends up reflecting a similar share of overall CRE domestic credit supply as the US and UK markets. To us that demonstrates the importance of a robust, vibrant and dynamic CRE private credit sector to help underwrite the supply of critically needed accommodation and national infrastructure amidst the continued pull-back of Basel regulated ADI’s from the sector.” Kaye said.

You can read the full article here.