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Sustained appetite for new site acquisitions, refinance, and cashouts of unencumbered properties has been driving growth at private lender Aquamore.
Non-bank lender Aquamore, which specialises in property-secured commercial loans (business and property), bridging loans, and land bridging finance, has revealed that the final quarter of the year has been dominated by demand for funding for new site acquisitions, refinance, and cashouts of unencumbered properties.
According to the lender’s NSW business development manager (BDM), Michael Rhee, the last quarter of the year has seen a mix of Lite Doc and No Doc applications.
Noting the trends, Mr Rhee said: “There’s sustained appetite from developers and investors in metro and sub-metro areas to accommodate the hybrid work-from-home model.
“In addition, borrowers are still actively seeking to refinance at a more competitive rate plus tap into the equity of unencumbered properties to expand their businesses further.
“Common uses for these cashouts include: bulk stock and inventory purchases, upgrading equipment and investing in technology to enhance operational efficiencies.”
Matthew Porch, head of third party distribution, Aquamore, suggested that the increase in new site acquisition inquiry could also be partly attributed to the company’s decision to extend its vacant land loan-to-value ratio (LVR) to 60 per cent following broker demand for vacant land funding in metro locations on the eastern seaboard.
The lender has been expanding its BDM team in NSW off the back of this strong demand, having recently appointed Mr Rhee, Richard Planca and Candice Lee as BDMs for NSW.
The team are tasked with supporting brokers to write more commercial finance transactions and upskill brokers about the nuances of the private lending sector.
Mr Rhee stated that the lender was attractive to brokers as it was “consistent and transparent about all aspects of the deal”, which “gives brokers confidence in [its] credit assessment for every deal”.
“From a personal perspective, I want to support my brokers and referral network by consistently delivering quality solutions that help drive business growth throughout Australia,” he added.
As well as hiring a new BDM, the lender recently completed a $50 million raise from a global investment bank, which took its warehouse facility to $170 million.
[Related: Aquamore welcomes new NSW BDM]
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