The principal of non-bank lender Chifely Securities, Dominic Lambrinos says commercial office space, retail and high-density residential developments have become “no-go” areas for non-bank lenders as the global pandemic increases fears of loan defaults – but retirement villages are still on the cards.
In an interview in The Sydney Morning Herald, Lambrinos says the financer, which has about 140 lenders as clients offering loans from $15 million to $50 million, has shifted from lending on a geographical basis to focusing on the class of the assets.
He identified retirement villages as one class with the potential for long-tail growth – providing lower product volumes, but more profits over a longer period of time.
Hotels and other hospitality operations, boutique residential, medical practices and boarding houses were also named as areas of growth.
“We are seeing less competition in the market as players have exited and the major banks maintaining their higher hurdles for financing deals, opening the way for Chifley and other remaining non-banks to fill the gap,” Mr Lambrinos said.
“This has given Chifley the opportunity to select fewer, but higher quality deals in the areas of construction, development and land banking.”
