Development Finance Partners opens the funding corridor from east to west.
WA is accustomed to economic booms, yet it remains relatively isolated when it comes to competition and choice on the financial front in the property sector.
The WA property market is experiencing heightened demand for fresh investment pipelines and is looking to the eastern states for funding connections. Because of the
concentration of players in WA, private fund managers and underwriters are also seeking diversity in their portfolios.
“We are seeing overwhelming demand for east coast capital right now. Traditionally, there has been reluctance for financiers and fund managers to go over there, due to the tyranny of distance. As a result the WA market has become siloed and lacking in competition,” says Development Finance Partners (DFP) principal and associate director Baxter Gamble.
The opportunity has led DFP to facilitate a new funding corridor bridging the east to the west.
“We want to redress the limited supply of funding choices in WA, and the market is in desperate need of access to fresh funding pools,” he adds. West coast developers are feeling the pinch of limited supply, hampered by geographic limitations, and are struggling to find underwriters.
“The opportunity in WA is vast, but it takes commitment to service that market and build relationships. Being the new kid on the block opens doors, however, and we hope to expand the field of vision from all sides of the property equation,” Gamble says. “DFP aims to bring our expertise in property development and construction financing and funding solutions, which we provide to the eastern seaboard, to this under-serviced WA market.”
DFP’s underwriter clients in WA have had limited exposure on the east coast and are seeking to distribute funding from WA into preferential equity/first mortgage property development finance up and down the east coast.
“DFP will be providing competition that wasn’t there before, with a strong commitment to services,” Gamble says. “By establishing this pipeline into the west, we are opening the door to a wave of bilateral opportunities for investors and developers, who may have been averse to exposure in an unknown market, and widening the pool for growth and innovation.”
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