ISPT loses key executive to Madigan

ISPT, the $20 billion property fund set up by Australia's largest pension funds, has lost a key executive, this time to Madigan Capital, the commercial real estate debt manager.

Just two weeks after ISPT bid and transaction lead Jessica Chen jumped to the Australian Retirement Trust, ISPT's head of capital and product development has also departed.

Luke Briscoe - who also oversaw the the firm's key investor relationships - will run Madigan Capital's funds management team.

As the commercial real estate debt manager, Briscoe will help drive Madigan's strategic funds management growth strategy in Australia and abroad.

Previously, he held senior leadership roles at AMP Capital, Charter Hall, the GPT Group, and Colliers International.

At AMP Capital, Briscoe spent six years leading the firm's end-to-end office and logistics business.

Before that, he oversaw the strategic asset management services across Charter Hall's $6.5 billion office portfolio.

Madigan chief executive Michael Wood said Madagan has been actively growing the team over the past 12 months following the hire of Chris Wilson from the Future Fund at the start of 2023, increasing headcount by roughly 50 per cent over that period.

He added that said growth has largely been focused on the loan origination and transaction implementation side, with supporting roles in asset management but with with Briscoe's arrival the firm can further develop its capital raising and investor solutions capabilities.

"Specific skills in the various disciplines with through-cycle experience are critical at senior levels," Wood said.

"Knowing where you are in the economic cycle and a heavy focus on asset management is fundamental to the preservation of capital on behalf of our clients."

Asked about the number of moving to real estate debt firms, Wood confirmed the need for banking skills in this sector.

However, he said Madigan equally sought to ensure strong skills and experience coverage on asset-specific aspects, given these loans are underpinned, and ultimately justified, by the quality of the underlying property, the sponsor, their capabilities, and strategies.

"We are first and foremost a real estate fundamentals-driven investment firm," he added.

Wood said Briscoe's breadth of skills and experiences (both on the capital and asset owner/sponsor sides), and his industry credibility, make him highly valuable.

"Luke is a well-respected, skilled and experienced investment professional with a deep understanding of the real estate industry, the needs and expectations of institutional investors and how high-quality investment organisations operate and succeed.

"We look forward to benefiting from his insights, energy and ability to build strong relationships as he comes on this journey with us.  And we want to make sure this benefit is mutual for Luke, as he builds out his expertise in real estate debt and the quirks of this increasingly important investment sector."

The chief executive said the appointment comes at a time when institutional investors are increasingly looking to the commercial real estate debt sector for sustainable and stable private market investment returns as part of a balanced portfolio.

Wood predicted that non-bank lending - which presently accounts for about 5-7 per cent of the local market - will grow substantially over the coming decade.

"Institutions seek the capital preservation and income orientation characteristics of lending against the real estate assets, that they might otherwise have owned, with the added benefit of natural liquidity provided by fixed term debt as opposed to the lower liquidity of direct real estate ownership," he said.

Madigan manages over $1 billion worth of funds for Australian superannuation and insurers.