Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Lender records surge in Chinese borrower demand

chinese flag  x chinese flag  x
James Mitchell 4 minute read

An Australian non-bank lender says over a third of its loans are to Chinese borrowers for property development projects.

While recent reports suggest that Chinese demand for Australian property may be cooling, Chinese property investors now make up 37 per cent of lending provided by non-bank finance group Chifley Securities.

The proportion of loans to Chinese borrowers on Chifley’s applications, worth over $400 million over the last year, has risen from 25 per cent over the last six months, notwithstanding the Chinese government has created more obstacles in moving capital out of the country, the group said in a statement.

Over the last year, Chifley Securities has arranged $150 million worth of deals to Chinese borrowers, who are mostly financing development projects ranging from residential developments to high-end commercial properties.

Advertisement
Advertisement

Chifley Securities’ director Joe Morello said the loans to the Chinese borrowers have allowed them to finance projects while they undertake the sometimes lengthy process of freeing up offshore funds or undertake projects that do not fit the major banks’ now very tight lending criteria.

“This year depreciation of the Australian dollar and historic low interest rates has encouraged Chinese investors to come here and invest in commercial projects – ranging from commercial investments to development projects.

“We expect this trend to continue over the 2016, especially as the major banks have restricted their commercial property funding or made their lending criteria much tighter,” he said.

Chifley Securities has created partnerships with 2,000 brokers with a lending pool of $700 million. The non-bank funds projects ranging from $1 million to $50 million.

Mr Morello said Chifley Securities is filling a niche in the market for Chinese borrowers by basing its lending decisions on the existing asset values, risk profile and prospects on individual commercial property projects.

PROMOTED CONTENT


[Related: New third-party lender scores first 'major deal']

 

Lender records surge in Chinese borrower demand
chinese flag  x
TheAdviser logo

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

chinese flag  x
James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.

 

 

more from the adviser
Renee Tocco

Breaking News

Prospa acquires brokerage

The SME lender has acquired a commercial finance brokerage and we...

Housing construction

Breaking News

Stamp duty, supply blocking housing affordability: REA

Reforming stamp duty, increasing housing supply and further exten...

suburb

Breaking News

First home buyers flee big cities

Analysis of broker-originated loans has shown that their first ho...