On September 27th we held another Wealth Pi Talk in our series of seminars on financing and investment. Lead by our Wealth Pi Fund team covered the topic of ‘Property Funding Solutions’. This event was co-hosted by Polyglot Group and Hall & Wilcox.
More than 40 Australian based Chinese developers attended representing a broach range of developer projects. This seminar received a great deal of positive feedback from attendees, and as further endorsement to its quality, we received more invitations from other financial institutions to co-host future events. We would like to say many thanks to our guests whom attended this event and to acknowledge that we really appreciate your support and look forward to seeing you at many more events.
In recent years, the Australian capital market has experienced both volatility and a large amount of negative press on many topics such as the Royal Commission into Banking and property market speculation around the end of a bull run. These key factors make it very difficult in predicting the future of these markets.
We, at Wealth Pi Fund, are specialized in providing both tailored funding solutions to our developers and offering quality investment opportunities for investors. Over the past year, Wealth Pi Fund and partners have funded over $150 million for both developers and construction, through leveraging the very experienced team’s deep understanding of property and debt funding.
For real estate development, funding has come under a great deal of pressure with the tightening of lending practices from all major institutions changing how property developers source financing. APRA has introduced many new regulations for Australian banks which have resulted in a reduction of the total amount of funding available for real estate development. This has caused many development projects to end up with “loan difficulties”.
Due to this change in available funding from banking institutions, there has been a significant rise of non-bank lenders such as ourselves to enter the market. With many different objectives from these lenders ranging across the risk spectrum, Wealth Pi fund will only the high-quality projects that have strong sponsors.
This recent talk had our finance experts share their insights on key drivers of the property funding market, and case studies on funding solution for both residential and commercial development projects.
Xiaohu (Tiger) Liu, the Co-founder and Managing Director at Wealth Pi Fund shared his perspective on the bank and non-bank lending; he stated the key points that real estate projects need to pay attention to when seeking loans.
Tiger believes that each project needs to be analyzed on its individual merits coupled with ensuring it has a quality sponsor with the necessary relevant experience in managing these projects. As each deal is unique, it requires a deep understanding of the various financing structures available such as bond issuance to get the most tailored and appropriate outcome for the borrower. To highlight this experience he shared a few case studies that Wealth Pi has completed over the last couple of months.
Dan Gallen, Director at Pallas Capital and Advisory Board at Wealth Pi Fund, shared his view on changing property market over the past two decades. Dan believes there is a time to be involved in property and there are times where you should sit out. Understanding this is key to determining underlying risks and working only with sponsors that understand these. Dan has provided debt advisory of more than $2 billion in the past ten years.
Christina Jiang, Business Development Executive in NSW at Wealth Pi Fund, said: “the most differences between the bank and us is that we are able to sit down with each of you (developer) to design a financing solution on your needs and interests”.
Wealth Pi Fund is one of Australia’s leading specialist boutique lenders, with reliable and robust funding sources, the ability to tailor property development and construction lending so that it aligns with management’s needs.
We support established and reputable developers, and with a comprehensive due diligence process bring first-class deals to investors to build their wealth. With a team of experienced professionals, some with over 20 years in financial markets, the Wealth Pi team has strong professional connections in Australia, China, and Hong Kong and looks forward to supporting many of you on your financial journey.
