In this edition, we cover the latest news on what's been happening in the finance industry as well as a snippet of our latest funding project which we are currently working on that are certain to be of interest to you.
We hope you enjoy the newsletter and as always, please contact us on 1300 728 796 if you have any questions or need our assistance with commercial finance.
RBA cuts cash rate by 100 basis points
The Reserve Bank of Australia (RBA) has slashed its official cash rate by a further 100 basis points following Tuesday's board meeting.
The cash rate is now 3.25 per cent, the lowest level in 45 years.
Economists had expected a cut of at least 75 basis points given the rapid deterioration in the global economy since the central bank last cut the rate in December.
The RBA has cut the rate by a massive 400 basis points since September last year in attempts to protect the economy from sinking into recession...read more
Source: The Sydney Morning Herald 3 February 2009
Lenders close to the limit
The Rudd Goverment's new $4 billion property finance joint venture with the major banks was needed because some Australian banks were close to their lending limits to the property industry.
BusinessDaily learned yesterday that at least two Australian banks--NAB and Westpac--were nearing their internal lending caps to the construction and commercial property sectors.
Local banks are under pressure to keep their corporate lending to industry sectors such as construction within specified limits as the credit crunch continues...read more
Source: The Herald Sun 27 January 2009
Obama's $1.2 trillion bill gets the green light
The Democratic-controlled US House of Representatives has approved an $US819 billion ($1.23 trillion) economic stimulus package critical to President Barack Obama's plan to revive the economy.
The House vote came after days of intense lobbying by the new president, including personal appeals to congressional Republicans...read more
Source: The Sydney Morning Herald 29 January 2009
Greed blamed for damage to Storm Financial
A Lawyer for more than 350 clients of collapsed investment adviser Storm Financial says the greed of the company and the banks caused hundreds to lose the fruits of their life's work.
The lawyer's comments came as a senator called for an inquiry into the role of the banks in the current financial crisis.
Many investors face loosing their homes after Townsville-based Storm Financial went into administration earlier this month. Investors were encouraged to take out high-risk margin loans to buy shares, which have now fallen in value...read more
Source: The Australian 22 January 2009
"Sovereign Islands", Gold Coast
"Sovereign Islands" is generally considered to be one of the premier residential locations on the Gold Coast. It is a developing, prestige, residential, waterfront estate located east of Paradise Point on the northern Gold Coast. The surrounding development comprises a mixture of vacant, residential allotments together with good to prestige quality, architecturally designed, residential dwellings most of which have either canal, harbour or Broadwater frontage.
B2B Capital is arranging finance to enable the client to refinance existing facility, to cover costs to complete the remaining construction of the property, allow for capitalisation of interest for two years and to allow sufficient funds to repay other existing debts. Total GRV will be $20millon and rates achieved were Bank Bill Rate plus a 3% margin.
B2B Capital has the ability to supply short term finance for acquisitions, refinance, development and construction for residential, commercial and industrial properties.
We can coordinate and structure finance packages to include the following:
- Senior debt
- Mezzanine funding
- Joint Ventures
This additional financial leverage can facilitate:
- Mergers and acquisitions financing
- An emerging growth opportunity
- A management or other leveraged buyout
- Corporate debt refinancing
- Recapitalization
- Commercial property development
Interest rates and fees associated with any loan approval will vary according to the type and complexity of the loan. All interest and fees will generally be capitalised within the loan facility.
