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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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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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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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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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 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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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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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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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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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 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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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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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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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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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 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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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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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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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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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 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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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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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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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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