This article is from the Australian Property Journal archive
DR Frank Wolf’s Abacus Property Group and its global partner are taking advantage of the bank’s tighter lending controls by stepping in and funding three developments loans totalling $121 million.
Wolf said two are existing loans from Abacus’ balance sheet while both parties have funded one additional new loan.
As a result, Abacus reduced its exposure to its existing residential development book.
“This provides Abacus an excellent opportunity to capitalise on the ongoing contraction in funding avenues available to property developers.
“Abacus and the global investment group will explore additional lending opportunities together, seeking to take advantage of the continued tightening in lending controls over the last few years that have led experienced developers to seek funding for some property transactions from other lenders,” Wolf said.
“The collaboration will typically look at funding opportunities in projects located in capital cities throughout Australia with the majority of funding to be provided by the global investment group.
Abacus will manage transactions and earn asset management fees while also having the right to share in any profits from the completion of future projects,” Wolf concluded.
Abacus joins the growing list of institutions replacing banks as financiers of projects.
Last week global investment giant Goldman Sachs provided a $120 million loan to fund the construction of Kokoda Property’s Chester & Ella 320 apartments development in Newstead, in one of Brisbane’s largest non-bank funded deals over the past 12 months.
Goldman Sachs firm is looking at a total of $1 billion in loans to residential developers down under, and was earlier this month joined by global investment manager TH Real Estate as offshore players looking to fill the void left by local major lenders.
Australian Property Journal
