Insights

  • October 18, 2019

    Loan product alert – October 2019

    Construction finance up to 85% LTC from 6.95% p.a. We currently have access to funds with appetite for low presale, high leverage construction transactions with pricing from 6.95% p.a. Guidelines: Up to 85% LTC Up to 72% LVR Low presale hurdle from 45% debt cover Transactions up to $30m All major metro areas Exlusive product […]

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  • 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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