5 Minutes With...Baxter Gamble, Development Finance Partners

Baxter Gamble is the Managing Director of Development Finance Partners (DFP). He has more than 20 years of practical experience in providing creative funding solutions for some of Australia’s landmark developments.

Q. What got you into property finance?

I love to solve problems which have a physical and tangible outcome and property finance delivers that in spades. From funding breakthrough developments to low cost housing, it all makes a difference, to our clients and end purchasers.

 Q. When did you start DFP and what was the catalyst?

DFP  kicked off in April 2012 and in its infancy worked virtually exclusively in debt workout and debt restructuring as we saw a significant gap to provide first hand practical advice and solutions to very complex financial and property issues. Over succeeding years DFP has become one of the market leaders in debt placement for construction and development finance. 

 Q. DFP has seen great growth in a short time - what's been your critical success factor?

DFP has and continues to be a business that has a strong family culture and shares all of its success with all involved -- it's a 'we' approach not a 'me' approach.  So quite frankly, it's our team that has built the business on the foundations of this culture.

Q. What do you see are some of the key opportunities for Australian Property Developers in the near future?

With both the State and Federal Governments continuing to expend substantial investment in infrastructure for transportation in broader outlying suburbs it would be remiss for property developers not to look to undertake developments in those emerging areas. 

Whilst site values are more affordable, which in turn provides a knock on effect to purchasers seeking to enter the property market.

In addition to the emerging areas, it is also important for developers to provide dwellings (apartments/townhouses) which are larger than the investment stock floor plates in outer suburbs for the baby boomers who are selling their family home, but want larger living areas and higher finishes.

The other benefit to this demographic is that they are generally cash buyers so settlement risk is nominal.

Q. What does DFP see as the biggest risk to the market over the next 12 months? 

The main market risk is the lack of liquidity to FIRB purchasers as this has numerous impacts on developers including being unable to achieve pre sale hurdles for construction funding as the sale is not generally recognised; inability to exit construction funding due to non funding of the purchasers on completion; and purchasers having to sell at a lesser value than when they purchased, with that sale then impacting all purchasers values. 

This alone will significantly impact developers. However, developers also need to look at the product they are building and ensure that they are meeting market expectations and moving to meet their requirements i.e. oversized apartments for downsizers as opposed to small investment units.

Q. What advice would you give to someone working in property finance? 

Always know that there is an alternative option to funding transactions.

Q. What is a key motto of your business?

We say what we are going to do, then do it.

Q. When you're not working with Developers on deals how do you like to spend your time?

I love being in the ocean so I spend as much time on the beach with my family as possible and am currently trying to master surfing at age 52.

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