Herbert Smith Freehills advised Pepper Australia Pty Limited (“Pepper”) on its acquisition and financing of a A$250 million small balance commercial mortgage loan portfolio from a major international lender as Pepper expands its specialised lending capabilities into a new asset class.
The transaction saw the acquisition and financing of commercial mortgage loans originated by a major international lender to approximately 730 customers which are predominantly secured by residential and commercial properties located in Australia. The financing was provided on a secured basis by Australian and international banks. The acquisition enables Pepper to diversify and expand its capabilities into the commercial real estate market while allowing it to build on its leading servicing and lending platform to small businesses and the self-employed.
The Herbert Smith Freehills team was led by Partner Mark Crean, with support from Senior Associates Mark Currell and Cameron Mitcham.
The Herbert Smith Freehills team previously advised Pepper on its purchase of more than A$5 billion in residential mortgage assets from GE Money in Australia and New Zealand and the purchase of €600 million in residential mortgage assets from GE in Ireland.
“We are delighted to partner again with Pepper to help them build on their expertise in the residential loan market and extend their specialised lending services into the commercial mortgage sector,” said Mark Crean. “It is great to see Pepper growing its product range and rapidly expanding its market presence.”
