Pomeroy Taps Capital Pool for Quick Project Funding

Private capital is continuing to steam ahead as developers look for certainty, speed to market and coverage on new projects.

During Covid, developers have taken advantage of Home Builder and state government stimulus before the year comes to an end, however banks have remained reluctant to lend without high levels of pre-sales and leasing.

This comes despite the Reserve Bank of Australia once again urging the big-four to open lines of credit to support the economy.

Meanwhile, international investors are looking to Australia as a safe haven for future developments and transactions, adding further liquidity to the system and broadening the pool of available capital.

“Despite Covid, private financiers are still supporting and funding the development of all asset classes including hotels, residential, retail, commercial and industrial often with zero to limited presales or preleases,” Pomeroy Capital director John Salamy said.

“Pomeroy’s capital partners are actively seeking opportunities to fund land settlements, residual stock loans and construction facilities.”

“While the banks still have a role to play, the non-bank sector has adapted quickly to create opportunities from what many see as fundamental limitations of the banking sector,” Salamy said.

“Our clients often come to us after the banks have failed to support their needs, whether it be due to insufficient gearing, unacceptable terms or just a general lack of appetite.”

“Fortunately, there are a lot of alternative funding solutions for property developers and by drawing on the broader Pomeroy group, we are able ensure the right funding solutions are consistently achieved.”

The Pomeroy Capital business is a subsidiary of well-known development advisory firm, Pomeroy Pacific, a family-owned business celebrating 50 years in the industry.

Pomeroy chief executive Mark Pomeroy said the business was a natural addition to the broad-based services already provided by the company.

“We knew we had access and knowledge that was extremely valuable and once we started solving our clients funding problems, the business was born.”

“We remain extremely humbled by the enormous growth Pomeroy Capital continues to experience and we are thrilled by our growing client base and the significant pipeline of projects on our books.”

Unlike traditional brokers, the Pomeroy Capital team is able to draw on the wider business to assess projects not only from the eyes of a financier but from the lens of a development advisor.

This assists in unlocking transactions that would otherwise remain challenging to fund on competitive terms.

“This insight and added value has been extremely well received and appreciated by our clients and our capital partners,” Pomeroy said.

With a pool of around 30 highly-reputable financiers from around Australia and the globe, Pomeroy Capital is acutely aware of how a project needs to be presented to obtain the best terms and pricing.

“Even if you have a relationship with a specific private funder, their objectives can often change month-to-month as they seek to balance their book to reduce concentration risk across assets and or location,” Pomeroy said.

“So when a client comes to us, we assess their project, package the transaction in a bespoke funding submission and commence discussions with the most suitable financiers for that specific transaction.”

“Knowing which financiers have the strongest appetite at that point in time, coupled with a succinctly packaged application, is the key to achieving the most competitive terms in the market.”

The Pomeroy Capital team specialise in arranging market leading debt and equity solutions for its clients.

Their model is risk free, requiring no mandate. It is simple. They will find you the cheapest capital with the best terms and they seek no payment from the developer for their services.

A true win-win in the capital space.

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