update:
16th august 2007
Our
Commercial Underwriters are flush with funds at the moment
and looking to expand their reach into new types of commercial
property. Commercial Term Loans remain extremely competitive
with no ongoing fees and at low margins above the bank bill
rate. For some development clients we are using these low-cost
funds as a take-out facility or land bank facility until
construction commences.
Land
Sub-Divisions in the outer suburban and growth corridor areas
are becoming a profitable venture for several of our clients
who are advantaged by our ability to fund their project costs
and capitalise interest. We are also witnessing the emergence
of more semi-rural sub-division activity.
We
are continuing to receive development finance applications
in a market that is unlikely to support further high-rise
development, however, these new projects, which are of a
smaller nature ($2-5 million), are benefiting from our ability
to provide finance up to 80% of the Gross Realisation Value.
Location of these new developments has been vital in ensuring
our clients are insulated from the negative perception currently
held by investors, of an over-supply of apartment-style property. |