BRW Newsletter - 3rd Edition - Sept 2018

Alistair Wood
Sep 10, 2018
3 min read

BRW Advisory

Increasing our reach – more people, more states

Welcome to the third edition of our Newsletter. The last few months have been a busy time. In March we moved to our new offices, and settled in quickly. You are very welcome to visit us.

Our representation has materially increased with Geoff Cortelingjoining us to cover his home state of Victoria and Borko Bliznjakovicjoining to add to our resources in Sydney. We also have others working with us that allow us to cover Queensland to complete our coverage of the eastern seaboard.

Recent BRW Advisory activity

Completion of Stage 1 funding for a Central Coast retirement village, with ongoing assistance and Stage 2 funding to be launched in the next few months.
Commercial Property loan re-financing.
Hospitality premises tenant management.
Multi-use properties managed on behalf of the owner – maintenance, tenant liaison and new lessees obtained.
Funding secured for Service Station business acquisition.

Current market trends

Banks – The Royal Commission appears to have increased the conservatism within the major Banks. We can point to a couple of propositions that in the past would have been approved but Banks have passed on because they falls outside standard criteria. The Royal Commission has quite rightly highlighted poor practices, but the unintended consequence will be to tighten the availability of funds.

Property lending– This remains a challenge, however, there is still competition for lowly geared proposals with good income generation. We have seen evidence of margins reducing over the last few months by as much as 10%. This coupled with the reduction in 90 day BBSY to c.2% means floating rate funding sub-4% is attainable.

Development funding remains difficult with all major Banks unless you have a strong track record and are utilising builders who can demonstrate their own capability to complete a project. This means that the private funders have good opportunities. The benefit of development funding is that the scheme should be self-liquidating and in recent times it has been possible to accommodate the higher finance costs within the project, and still make strong returns for the equity provider. The recent sentiment towards market deterioration has yet to really impact the Sydney market. Current indications imply that we may have a slower market that is beginning to favour the buyer – but we are a long way from a significant market correction.

Benefits of using BRW

Access to experienced industry professionals.
Free assessment and objective guidance on your banking requirements.
Strong relationships with Tier 1 and Tier 2 finance providers to the Corporate market.
Clear focus on the best deal for the client.
Competitive fees weighted towards achievement of a successful outcome.
Support through the full process ensuring that Bank conditions are achieved quickly and efficiently.
Ability to provide an ongoing monitoring of your loan/s to ensure covenant compliance is maintained.