Non-bank financiers are rapidly growing their commercial property and development lending books with Chifley Securities recording $300 million worth of loans written in just six months.
The company, backed by high net worth private investors, is predicting further growth with a war chest of more than $400 million still to deploy into commercial property.
Chifley Securities’ director Joe Morello said he was seeing a major gap in the market where big banks were unaccommodating to new borrowers.
“I don’t think our own growth in lending has been so much about taking the risk,” Mr Morello said, “I think it is the fact we don’t have as much rigmarole as the banks.”
“I think non-bank lending is becoming a major tool due to the way the banks deal with clients,” Mr Morello said.
While Australia’s major banks have increased their exposure to commercial property by 6.5 per cent or about $12.3 billion in the 12 months to March there are still very restrictive requirements for lending.
Mr Morello said Chifley Securities was filling a niche in the market by simplifying the application process for loans and basing lending decisions on existing asset values.
“Our borrowers want to access a quick and a hassle free process, and we have provided funds for projects, from land banks to both small and large commercial centres.”
Read more: Australian Financial Review