Powered by MOMENTUM MEDIA
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.

sme logo

Developers to bypass banks with new $500m fund

bank  bank
Staff reporter 2 minute read

A new real estate debt fund is looking to capitalise on the pull-back in bank lending to residential and commercial development projects.

Real estate investment manager Qualitas has raised $500 million for the first fund of what it anticipates to be a "multibillion-dollar construction finance program".

Advertisement
Advertisement

Qualitas is looking to "fill a gap created by a pull-back in bank lending" by providing loans of up to $125 million for residential and commercial development projects.

Group managing director of Qualitas Andrew Schwartz said investors are "stepping in to provide fresh capital to the development sector at a time when banks are reducing their lending activities".

"Qualitas has a long history of providing an alternative source of capital for quality projects backed by reputable developers," Mr Schwartz said.

"Our new construction finance fund will provide a much-needed source of capital to developers in a tight credit market, with a focus on quality projects in east coast capital cities.

"With Australia's growing population and the very tight vacancy rates in Melbourne and Sydney, we are especially focused on these markets to provide much needed debt capital to quality projects."

The new fund will be run by Qualitas real estate finance managing director Tim Johansen, who has made two appointments from the banking sector to help oversee the fund.

Mark Power will join Qualitas as director of real estate finance after 17 years at NAB and Gil Norwood will join as director of real estate after nine years at ANZ and seven years at CBA.

[Related: Broker secures $100m in private finance]

Developers to bypass banks with new $500m fund
bank
TheAdviser logo
bank
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.

 

TODAY'S POLL

View results >

Who do you aggregate through?

Thank you for your vote, you can see the results here.

more from the adviser
Court rules against bank for ‘unfair’ loan terms

The Federal Court has declared a number of loan contracts entered...

APRA RBA ta RBA, APRA sing different tune on serviceability buffers

APRA chair Wayne Byres has dismissed the need for a cut to the bu...

loanapplication Remodelled FHB scheme cops backlash

From 1 July, all applications for the FHLDS will require a Notice...

FROM THE WEB