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.
Banks squeeze home owners to save profits
HOME owners face higher interest rates as the Big Four banks try to protect their bottom lines from rising bad debts and the higher cost of borrowing.
With both the ANZ and National Australia Bank warning yesterday that the recession-hit economy will see their multibillion dollar bad loan problems spread to consumers over the next 12 months, the prospect of any further Reserve Bank rate reductions being passed on in full are receding rapidly...read more
Source: Sydney Morning Herald 30 April 2009
Battered City Pacific to face investors
CITY Pacific has finally bowed to commercial reality and shaved 39 per cent off the value of its $1 billion First Mortgage Fund.
Seven months ago, the company, when under the control of founder Phil Sullivan, wrote down just 5 per cent -- or $50 million -- in the value of its loans to $969 million after a horror year of market upheaval.
Yesterday, it revealed loan impairments of $339 million, a surge of more than 700 per cent since September...read more
Source: Gold Coast Bulletin 28 April 2009
Rudd Bank 'a priority'
ANZ has warned that the freeze in the $8 billion-plus commercial mortgage-backed securities market represents a bigger threat to the commercial property sector than the possible exit of foreign banks.
In its submission to a Senate review into the Australian Business Investment Partnership, or the so-called "Rudd Bank", ANZ said the lending vehicle should be established as a priority.
ABIP has been proposed as a contingency fund if a foreign bank leaves a syndicate funding a commercial property project yet to be completed...read more
Source: The Age 23 April 2009
Banks hike rates as RBA mulls further cuts
Australia's biggest banks have raised interest rates on fixed rate mortgages amid ongoing concerns that homeowners are not getting the full benefits of cuts in official rates.
None of the major banks passed on all of the Reserve Bank of Australia's 25 basis point cut in rates earlier this month and yesterday Commonwealth Bank and Westpac said they are hiking rates on fixed mortgages.
National Australia Bank confirmed today that it has raised interest rates on fixed home loans by 20 basis points carrying a two and three year term...read more
Source: ninemsn Money 21 April 2009
Current Funding Available
B2B Capital can assist with the following funding options currently available which are as follows:-
- DA Approved Sites
- Distressed Projects
- Partially Complete Projects
- Completed Projects
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.
