This article is from the Australian Property Journal archive
AS the big four banks pullback from lending for apartment projects, global giant Goldman Sachs has stepped in to provide $120 million funding to Kokoda Property – in one of the Brisbane’s largest non-bank funded deals.
Goldman Sachs will fund the construction Kokoda Property’s Chester & Ella project in Newstead, Brisbane.
The deal is one of Brisbane’s largest non-bank funded deals secured over the past 12 months and Goldman Sachs’ first deal over $100 million in Brisbane.
Since Chester & Ella’s staged launch mid-2016, the 320-apartment, twin-building development has been highly successful with stage one, Chester, chalking up $95 million in sales in four weeks, and stage two, Ella, generated $14 million in one transaction, and a further $22 million in sales over its launch weekend in November.
Goldman Sachs’ entry into residential and commercial property lending comes as APRA’s clampdown on the big four banks’ lending habits is reducing the ability of developers to move their projects forward.
Kokoda Property’s director of capital and investment, Rick Impala, said the US Investment bank’s decision to partner with Kokoda was confirmation of its alignment with well-credentialed local developers, with a proven track record of delivering exceptional projects.
“The regulatory restrictions imposed on the major banks in recent times has opened new opportunities. However, there is no question that the level of due diligence, credit review and documentation performed by Goldman Sachs was as robust and thorough as compared to what would otherwise be exercised by a major bank,” Impala said.
“The funding speaks strongly to Goldman Sachs’ belief in the Brisbane market. Kokoda Property is preparing to launch its third project in 18 months in the transforming city, with the investment firm expressing early interest to partner with the developer on future projects,” he added.
Kokoda Property founder and managing director Mark Stevens said international players have set their eyes on Brisbane.
“Property development comes with many challenges, but a clear vision and commitment to innovate allows us to move beyond them.
“International players are realising what astute developers in Australia already know – the property market in Brisbane is underrated, and it is the city to watch,” Stevens said. “The next few years will be critical to the buoyancy of the market, and we expect to see 2018 commence with a strong surge of sales to coincide with the 2018 Commonwealth Games.”
Kokoda Property has recently acquired two new sites in Hawthorn East and Malvern, boosting its portfolio end value to $1.1 billion.
Australian Property Journal
