A perfect storm has hit developers in the form of restriction to bank lender to foreign investors, as the clampdown on investment withdrawals from China and the softening of new apartment sale prices as supply begins to outstrip demand. For developers with a high percentage of pre-sales to such investors, there is the very real potential for banks to take action if completion risk threatens cash flow to support borrowings.
Developers and their broker / introducers should look to the non-bank sector for a solution. Debenture Issuers and other traditional finance companies outside APRA regulations have fewer restrictions when it comes to investor loans.
Semper Capital is happy to receive applications from overseas investors and will assess them with consideration to our overall exposure by property and location. If you have a developer facing completion risk, or overseas applicants struggling for finance, please call us 1800 SEMPER (736 737).