• September 29, 2019

    Loan product alert – Sept 2019

    Up to 75% LVR under 5% p.a…no way! We have recently seen a significant shift in the non-bank capital market with compression of non-bank rates trending downwards towards traditional banking pricing for investment debt. Lender: Non-Bank; – Loan size: from $1M up to $7.5M; – LVR: up to 70%-75%; – Interest rate: 4.70%-5.10%; and – […]

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  • September 10, 2019

    Build to can’t sell. Let’s be honest.

    This article examines the existing conditions in the build-to-rent market and highlights: Financing constraints on the debt and equity side that are hindering investment in the segment; Lack of tax concession for investors (MIT withholding tax/lack of GST Credits) significantly impacting project returns; and Pointers we can take from overseas with their further advanced build-to-rent […]

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  • August 14, 2019

    Stamford Capital courting overseas investors

    With banks now requiring 100-120% debt coverage for overseas buyers and local appetite reducing for off-the-plan apartments due to Opal and Mascot towers incidents, non-bank lenders have developed zero pre-sales product to cater to this market. Click here to read the full article.

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  • July 16, 2019

    July 2019 Outlook

    Since our last Outlook, interest rates have been reduced twice by the central bank. The second cut had forecasters divided as to the timing, but clearly the rate reduction had been fully priced and expected by the market. The RBA finally abolished the 5.00% employment benchmark that it had been linking policy with, as a […]

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  • July 5, 2019

    Lending after the storm

    Figures show the changing appetite of lenders. As the banking sector recovers from the perfect storm created by APRA restraints, the royal commission and the final Hayne report, lenders are looking to grow their loan books and develop new products for the changing market, according to Stamford Capital’s 2019 Real Estate Debt Capital Markets Survey. […]

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  • July 2, 2019

    Suntec REIT secures Pyrmont’s Workshop for $297m

    We are delighted to announce Singapore-based Suntec REIT has recently finalised the acquisition of the Workshop office building in Pyrmont, an A-grade asset being developed by one of our clients Milligan Property Group in partnership with Stamford Capital Australia and Quintet Partners. To read the article from The Australian written by Ben Wilmot Click here

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  • June 17, 2019

    Banks put tenants under the microscope

    Over the last 12 months banks have been continuing to ramp up scrutiny on commercial property assets. There has been more attention paid to interest cover for investment assets however anticipated interest rate cuts and the recent reduction of bank bill swap bid rate (BBSY) will likely lead to some relief. An emerging trend that […]

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  • June 15, 2019

    Pre-sale criteria continues to constrict development

    Australia’s banking sector is in recover mode after being hit by the perfect storm of influences, according to a new industry survey from Stamford Capital. Due to the effects of APRA restraints, the Royal Commission and resulting Hayne Report, pre-sale criteria continues to constrict residential development, according to Stamford Capital’s Real Estate Debt Capital Markets […]

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  • April 30, 2019

    Commercial finance trends in Australia’s post Hayne Report climate

    As Australia’s banking sector continues its recovery from the perfect storm of APRA restraints, the Royal Commission and resulting Hayne Report – pre-sale criteria continues to constrict residential development, lenders are looking to size up loan books and scramble to develop new products for the changing market and many anticipate an interest rate decrease, according […]

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  • April 17, 2019

    Eastern states stats don’t apply to SA claims report

    Eastern states stats don’t apply to SA claims reportAs Australia’s banking sector continues its recovery from the royal commission and resulting Hayne report, pre-sale requirements continue to constrain residential development with lenders looking to size up loan books and develop new products says a new real estate survey from a national finance broker. But, claims […]

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  • April 16, 2019

    NAB tips peak-to-trough house price decline of 20pc

    NAB has downgraded its house price forecast for 2019 after weak conditions early this year were worse than expected. Sydney and Melbourne will continue to lead the decline, but the major lender now anticipating peak-to-trough falls of 20% and 15% respectively. Perth is expected to remain weak, while the other capitals will hold up. To […]

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  • April 11, 2019

    Real Estate Debt Capital Markets Survey 2019

    With Australia’s property market now in decline, it’s time to deal with the reality. Property developers and investors are seeking new opportunities in a more challenging market as the promise of the property boom wears thin and presales become next to impossible. In a post-Hayne Report environment, major banks are still hamstrung by stringent credit […]

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  • April 10, 2019

    More private commercial lenders offering loans without pre-sales

    More than a third of private lenders in Australia are starting to offer loans to residential developers without pre-sales commitment, as tough times in the housing market call for more fluid lending, an annual survey by lending broker Stamford Capital reveals. Nearly all of the major banks still require pre-sales of apartments and new homes […]

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  • March 28, 2019

    March 2019 Outlook

    It has been a while since our last interest rate outlook paper (Oct 2018), and the landscape appears to have changed. In our last Outlook, we tended to agree with a number of other forecasters that interest rates have a tightening bias, but wouldn’t look to move until late 2019 at the earliest. We feel […]

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  • March 15, 2019

    Loan product alert – March 2019

    Competitive non-bank term debt (FINALLY!) We haven’t seen non-banks being interest rate competitive with the banks since pre-GFC. Finally we are seeing some traction in this space. Following our last product update, we have another highly competitive new non-bank investment/term debt product: Lender: Non-Bank; – Loan size: from $10M up to $150M; – LVRs: up […]

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  • February 15, 2019

    Loan product alert – February 2019

    1.25x ICR from 4.5%….shut up and take our money! We have a highly competitive new non-bank investment product: Lender -Non-Bank; – Loan size – up to $10m; – LVRs – up to 65%; – ICR – 1.25x min; – Interest rate: from 4.5% p.a; Location: for all major cities eastern and southern states. Who might […]

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  • November 20, 2018

    Stamford Capital expands into Victoria

    We are delighted to advise Henry Buwalda has joined the Stamford team to lead our Victorian operations. Henry brings to Stamford a great deal of experience, in particular in Victorian property markets, having led various teams across multiple banks in Melbourne for over 35 years. Through that time, Henry has built a wealth of knowledge […]

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  • November 10, 2018

    Hayne Report to hit home developers and commercial lending

    It has been impossible to avoid reports on the banking royal commission’s findings, yet most analysis has focused on the impact of proposed changes on the mortgage broking sector. Few commentators have discussed the inevitable flow-on effects on the residential property development sector and its many related industries. Click here to read full article by […]

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  • October 12, 2018

    October 2018 Outlook

    AUGUST KEY POINTS *¹TOTAL DWELLING UNITS The trend estimate for total dwellings approved fell 1.9% in August. The seasonally adjusted estimate for total dwellings approved fell 9.4% in August *²PRIVATE SECTOR HOUSES The trend estimate for private sector houses approved fell 1.2% in August. The seasonally adjusted estimate for private sector houses fell 1.9% in […]

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  • September 30, 2018

    AustSuper to finance $145m complex

    Stamford Capital is delighted to have played a key role in this transaction. Click here to read full article by Ben Wilmot in The Australian.

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  • Sunny skies for Brisbane apartment market

    It’s widely accepted within industry circles that we are through the worst of the headwinds that the Brisbane apartment market will experience. The supply has all but dried up (certainly in the inner ring) and almost all key indicators affecting forward-looking pricing for the Brisbane apartment market are improving, albeit from a low base. Broadly […]

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  • September 20, 2018

    ICR is the new LVR

    Conversation with the Australian banking market on investment assets is nearly exclusively now led by the question of “ICR” (interest cover ratio). Then there is some chat around asset WALE (weighted average leasing expiry) and makeup of tenancy schedule. And coming in as an afterthought is LVR…hard times for what was previously the key metric […]

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  • August 25, 2018

    Loan Product Alert August 2018

    Following our last Product Update regarding a invest debt / term loans with interest cover requirements of less than 2 times, Stamford is pleased to advise it has access to another competitive loan offering from a new lender in the Australian market offering larger term / investment debt. High level details as follows: Loan size […]

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  • August 15, 2018

    Certainty through market constraints

    Over the past 12 months, we’ve seen investment capital tighten and some slowing across real estate markets. Yet we also received at least one call a week from new entrants to the real estate debt capital market, actively looking for deals. And we executed more deals in the non-bank space this year – a total […]

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  • July 20, 2018

    July 2018 Outlook

    In FY 16-17, fuel prices were 124c per litre on a national average, whilst diesel’s average at the same time was 125c per litre. In FY 15-16, they were 122c and 123c average respectively. We roll the clock forward to the current period and fuel is closer to 150c per litre and diesel up to […]

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  • July 15, 2018

    The rise and rise of non-bank and alternative funding

    Until relatively recently, Australia’s major banks dominated construction and investment lending. But within the next 12 months, the developing capital landscape will look quite different. Thanks to APRA and ASIC restrictions, new funding models have arrived – some with very different product offerings. We recently surveyed over 100 debt capital providers, and the majority told […]

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  • July 1, 2018

    Loan Product Alert July 2018

    The majority of Bank’s are now requiring a minimum 2 times interest cover for commercial property term debt loans, which pending an assets net income, restricts LVR’s available. For Borrower’s seeking additional leverage, Stamford, via one of its capital lending partners has access to an interesting loan product for commercial investment property which requires a […]

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  • June 2, 2018

    Have Chinese investors lost interest in Australian properties?

    Regulatory issues and constraints on capital leaving the country have contributed to a noticeable cooling down of interest from Chinese investors since the booming 2014-2017 years – but there’s still a great deal of opportunity coming from China, it’s just taking a slightly different shape. How are things changing? There is a shift in transaction […]

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  • May 1, 2018

    Real Estate Debt Capital Markets Survey 2018

    After riding high through the property boom, Australia’s developers and property investors have faced tight liquidity constraints and challenging yields over the past year – especially in riskier pockets of oversupply. This is likely to become business as usual in the year ahead. But how will capital providers respond to the shift in the market? […]

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  • March 28, 2018

    March 2018 Outlook

    We are at the at the end of quarter one 2018 and perhaps at a crossroad. The major global economies are witnessing growth and GFC is almost a forgotten blight on the landscape. Central banks are either raising interest rates as in the case of the US, or withdrawing surplus liquidity from their money supply […]

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  • March 1, 2018

    Greater role for broker specialists: Stamford

    Commercial property finance broker Stamford Capital has set up shop in South Australia, vowing to ease the funding constraints facing local developers and investors. The Adelaide office of the national group is being led by director Adam Miller, who has more than 20 years’ experience in the sector, including senior roles at NAB and BankSA. […]

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  • February 28, 2018

    Loan Product Alert March 2018

    Stamford Capital is able to secure construction funding from $1.0m up to $25m for developers at interest rate up to 10.35%, No line fee and NIL presales up to $2.0m. Presales Up to $2.0m Nil Presales $2.0m to $5.0m 50% presale cover $5.0m to $15.0m 75% presale cover Over $15.0m to $25m Case by Case […]

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  • February 10, 2018

    I’m a non-bank lender…get me out of here!!

    2018 is shaping up to be a most interesting year for non-bank capital, particularly in the development finance space…well as interesting as real estate debt can be! For those wanting to skip the details, the key comments from Stamford are as follows: When it comes to debt funding real estate developments, we’ve seen a considerable […]

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  • January 29, 2018

    Stamford expands into Adelaide

    Stamford Capital has opened an office in Adelaide as part of its national expansion and appointed Adam Miller as Director. Miller brings over 20 years’ experience in the commercial property sector spanning valuation, asset management and banking, he has held a range of senior roles at financial intuitions such as Bank SA (a division of […]

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  • January 8, 2018

    A new perspective on China

    There are still plenty of opportunities in Australia for Chinese developers and buyers. But with the Chinese government tightening capital outflow, it’s not so easy for investors and developers to move their money out of the country. That’s why Stamford Capital is proactively expanding its services to the Asian market. Having recently joined Stamford Capital […]

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  • August 2, 2017

    Is now the time to worry about settlement defaults?

    As regulatory pressure on lenders intensifies, and a significant volume of apartment developments near completion – settlement default is becoming an increasingly common topic of conversation. It poses a big risk for developers, who are faced with the challenge of protecting their investments in a volatile and potentially deteriorating market. Purchasers at risk of default […]

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  • August 2017 Outlook

    The current interest rate environment is benign with shortened periods of volatility, generally settling down within two to three weeks. This is a pattern which has repeated itself for the past 18mths – 2years with little or merely passing interest from borrowers to address any debt and hedging exposures. Indeed, a fair amount of activity […]

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  • July 20, 2017

    How to Choose the right valuation partner

    How to choose the right valuation partner When you’re securing finance for your next investment or development, you need a good commercial property valuer to kick-start your project. The right valuer can provide essential initial guidance on your potential valuation amount, reducing the risk of any surprises when you get to the bank. The valuation […]

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  • July 10, 2017

    New financing options for residual stock

    The excess of residual stock on the residential market is causing a few headaches for developers, especially when looking to finance their next project. Here’s why: banks are constricting their home loan appetite to foreign purchasers, so investors who made assumptions on criteria 18 to 36 months ago may now face difficulties financing their off-the-plan […]

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  • June 26, 2017

    Where will your bank manager be next year?

    Over the past decade, the broker market has rapidly expanded. Back then, mortgage brokers accounted for 15 per cent of residential loans, and now it’s more than 53 per cent. The commercial broker market is also on the rise, although it started to develop a little later. Currently commercial brokers are responsible for around 12 […]

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  • June 15, 2017

    Challenges ahead for offshore developers

    The number of offshore developers in Australia has risen dramatically over the past five years. Knight Frank Research data shows Chinese developers and investors only held two per cent of total development site sales in 2012. By the end of 2016, it had grown to 38 per cent.¹ In China, fears of a slowing economy […]

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  • June 10, 2017

    Commercial development leased by French Public relations company

    Stamford Capital has been working with Milligan Group since both our inceptions. We are proud to announce that French advertising and public relations company Publicis Groupe has leased the office space at 21 Harris Street, Pyrmont with developer Milligan Group. The development was backed by Stamford Capital Investments and Quintet Partners. Click here to view […]

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  • June 2, 2017

    Stamford comments on construction finance market

    Project funding is coming on stream again after the banking market effectively ‘seized’ in mid-2016, but this new money is very choosy and comes at a price, says Stamford Capital’s executive director Michael Hynes. “Towards the middle of the year the banking market seized, with APRA closely scrutinising lending to all sectors – commercial and […]

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  • February 3, 2017

    February 2017 Outlook

    Interesting, the adjective is defined as arousing curiosity or interest; holding or catching the attention, with synonyms of absorbing, engrossing, fascinating, riveting, compelling, spellbinding, etc. Whilst some of the synonyms may be a little far stretched, the past year could certainly be assessed as interesting to say the least. The questions now is ‘has the […]

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  • August 2, 2016

    August 2016 Outlook

    Sometimes it can be hard to fight City Hall. The RBA has delivered a much expected interest rate cut and yet most of us don’t feel that bullish about economic conditions. An explanation for part of this feeling is the much tighter capital conditions that are apparent in the bank debt funding market and subsequent […]

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  • March 2, 2016

    March 2016 Outlook

    Every day appears somewhat like Groundhog Day, when reviewing the RBA setting of its targeted cash rate. That’s not to say that there isn’t market volatility in the yield curve and fixed rates and we have certainly witnessed significant volatility in the AUD currency. So in reviewing the current market conditions and value opportunities, should […]

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  • February 28, 2016

    Investors and developers face mini credit crunch

    Commercial property investors and developers can expect a mini credit crunch from Australian banks this year as the rising cost of funds and new regulations start to bite. Intermediaries between banks and investors, as well as several non bank lenders, are already seeing conditions tighten despite the latest data form the Australian Prudential Regulation Authority […]

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  • February 2, 2016

    Best of NSW crowned at sold-out event

    More than 20 mortgage professionals across New South Wales received top honours at The Adviser’s Better Business Awards last night. Over 500 people gathered at Sydney’s Sofitel ballroom to recognise the award winners across a range of categories. Raymond Xue of ACA Mortgage Solution took out the most coveted gong of the night, Broker of […]

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  • November 26, 2015

    Credit tightening in property sector with banks increasing margins, is Australia set for a credit crunch?

    According to leading economists and market commentators, liquidity has started to tighten in Australian markets in direct response to regulatory changes implemented by Australian Prudential Regulation Authority (APRA) across the banking sector forcing banks to hold more capital. In addition, global and macro-economic factors are adding to the squeeze on liquidity and the impacts on […]

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  • August 10, 2015

    APRA changes for banks likely to hit property sector

    Australian Prudential Regulation Authority (APRA)’s proposed change to increase equity allocation on mortgages has been a hot topic for some time within banking circles and its implications will soon be felt across the property development and construction sectors. Click here to download the full article.

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  • February 10, 2015

    Institutional funds provide welcome market support

    The past six to nine months have been dynamic for the commercial real estate lending market, in particular the non-bank lending sector, where reduced competition during the GFC stagnated growth and hindered access to capital. Click here to view the whole article.

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  • May 3, 2014

    May 2014 Outlook

    As we head into the federal budget with a conservative government at the helm, it would appear that the strategy of leaking bad news of fiscal restraint and austerity measures are having an impact on consumer sentiment at least. The Weekly ANZ – Roy Morgan consumer confidence survey has taken a 4% drop in a […]

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  • November 10, 2013

    November 2013 Outlook

    With the end of 2013 fast approaching we thought it timely to provide a brief update on the capital markets and some detail on recent transactions closed by Stamford. Through the course of this year we have seen an increased supply of capital across the whole stack. This has been particularly noticeable in the structured […]

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  • May 3, 2013

    May 2013 Outlook

    Great to see the RBA delivered on a broadly unexpected timing of a 25 bpt rate cut yesterday. There has been no shortage of media coverage around interest rates of late and the timing of a ‘line ball’ call of whether the RBA ease. As the central bank has acted to reduce the cash rate […]

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  • August 10, 2012

    August 2012 Outlook

    Prior to 2008, the $2.6 billion structured capital market for commercial property was, in our experience, more liquid in sub $5 million exposures as opposed to larger mezzanine deals. This was a reflection of the market risk appetite and demand at the time given structured debt facilities of $1 million to $5 million were associated […]

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  • April 4, 2012

    April 2012 Outlook

    Russell has over 20 years’ experience at a senior executive level in financial markets, specifically capital markets sales and treasury risk management. Russell has expertise in assisting clients with all their treasury risk management requirements and has worked with organisations across ASX 200 as well as having guided a number of mid-tier clients through solutions […]

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  • February 22, 2012

    February 2012 Outlook

    The early part of 2012 has seen weak sentiment in the commercial real estate market carry through from the later part of 2011. General business confidence is also low, particularly in those parts of the economy not benefitting from the strength in the resources sector. Click here to view the full Stamford Insight.

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