In the most recent NZ Adviser industry article, Killarney Capital general manager Casey Williams describes how the current development finance market is quiet, but there are some green shoots appearing. The article goes on to discuss how non-bank lenders are filling the gaps in development finance as banks retreat to safer ground.
“Banks will always play an important role in development finance. They have scale, balance sheet strength, brand recognition and the ability to price very competitively when a deal fits neatly inside policy. They are very good at picking the low-hanging fruit: strong sponsors, clean pre-sales, conservative leverage, standard security and simple structures.”