FINANCIERS Dominic Lambrinos and Domenic and Joe Morello have established a commercial property lender with an initial lending pool of $480 million.
Mr Lambrinos said the group, Chifley Securities, would offer loans between $2m and $30m. He said the major banks were difficult to work with due to lending covenants and red tape.
“Property developers and investors are aware of the very tough terms now imposed on them by the major banks since the global financial crisis and they are seeking alternatives to the traditional funding route,” said Joe Morello, the principle of Nationwide Capital.
“The majority of our funding is coming more from Australian private investors, with the balance made up of European and Chinese investors, who we see as a major growth driver for property finance in the future.”
Financing costs will range from 8.5 to 12 per cent a year.
Australian Business Review