Funds for private commercial investors

Written on the 30 November -1

THE Gold Coast's commercial property market is currently dominated by private investors and owner occupiers in search of quality products ranging between $1 million and $10 million, says Benjamin Heaney, of Drexel Financial Services.

As a finance professional for many of the Gold Coast's high-end property market participants, Mr Heaney says he has witnessed a noticeable shift in favour of commercial property acquisition in the past 12 months.

"Select lenders have followed this trend with interest, with some lenders opting to lead the race to introduce new and tailored products specifically for 'private' commercial property investors," he says.

"Previously, commercial finance was an onerous process, with the lender requiring two years' financials and tax returns to lend at a relatively low LVR (loan to value ratio) of 70 per cent. This meant that private investors were required to come up with a 30 per cent deposit.

"This was often seen as a drain on capital resources which could be more efficiently used elsewhere," he says.

Mr Heaney says the new wave of commercial loan products includes LVR positions to 85 per cent and LVR positions to 80 per cent LVR without having to verify income through financials.

"This has significantly facilitated commercial property acquisitions for private investors and owner occupiers," he says.

Drexel Financial Services has undertaken significant due diligence on a range of mainstream and boutique commercial products.


Latest News

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

EAST COAST PROPERTY BOOM BUILDS PROFITS FOR BRICKWORKS

AUSTRALIA'S residential property boom has helped drive a sharp rise in first half earnings for Brickworks (ASX: B...

COLLINS SUPERSIZES IN EUROPE WITH PURCHASE OF 16 KFC RESTAURANTS IN THE NETHERLANDS

COLLINS Foods (ASX:CKF) has stepped up its European expansion through the purchase of 16 KFC restaurants in the Ne...

CSIRO HELPS DEVELOP AUSTRALIAN PHARMA COMPANY FROM $10 MILLION TO $305 MILLION

GOVERNMENT backed scientists have helped multiply the market value of a previously small Australian pharmaceutical...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter