Non-Bank Lender Provides ‘Much-Needed’ Liquidity

Australia’s residential building industry has a strong track record of underpinning the nation’s economic growth and stability—and never more so than in the face of the coronavirus storm, with analysts predicting early on that the construction industry will help lead the way in an economic rebound.

With availability of access to tailored, timely construction funding one of the most important drivers of new activity in development, the popularity of Australia’s non-bank finance sector—already on the rise thanks to changes in the banking sector—is likely to continue.

Providing construction finance solutions in a time of constrained capital, the sector now comprises an array of providers, amid which property fund manager Trilogy has spent more than two decades building a reputation for personalised lending solutions, agile service delivery and certainty in a challenging market.

Trilogy has enabled the successful development of an array of projects including apartments, townhouses, land subdivisions, commercial buildings, house and land packages, aged care homes, childcare centres and social housing.

Head of lending Clinton Arentz said developers who choose Trilogy benefit from an efficient approval process and draw-down timeframes to keep the project on track, made possible by the company’s experienced lending team combined with funds being readily available from their pooled mortgage trust.

“Rather than just investing in one loan type, we lend to a wide range of developers and projects, and our scale—spanning three states—provides critical diversification, in a geographical sense, and through product type,” Arentz said.

“In a liquidity sense, since we don’t have the capital raising risk associated with contributory funds, we have funds available from the start of the project through the life of the loan.”

Trilogy’s industry knowledge offers added reassurance.

“During our 20 years in the business working on many different types of developments, we’ve learnt a lot about financing in the construction industry and are able to guide our clients with strategic decisions.”

“We take a ‘conservative’ view upfront—we’ll review a project from start to finish and build in contingencies for delays or hiccups, which allows us to minimise the impact of anything that comes up later on,” Arentz said.

“We’ll only go ahead if we believe the project is sound from start to finish.”

To help ensure the smooth completion of the project, a dedicated portfolio manager works directly with developers from loan application to settlement, through to sell down of completed stock, and full loan repayment.

A nimble, personalised approach means Trilogy can step in to help the borrower at any point along the way when issues arise, such as running behind on construction schedule or—as the project progresses to completion—falling behind in sales rates, for example.

“We pride ourselves on our agility and our ability to make quick, sensible changes to help clients solve immediate challenges that arise,” Arentz said.

“Being able to intervene early means we can suggest alternatives and complementary strategies and help get the project back on track quickly.”

Arentz said the challenges presented by the Covid-19 outbreak offer a perfect example of how economic headwinds can impact the development game—and the sound guidance provided by the Trilogy team.

“We monitor the markets daily to keep abreast of the rapid shifts in the market—and the flow-on effects for our industry.

“We’re also keeping a close eye on supply chain issues that have arisen during the pandemic—our industry experience means we understand the knock-on effects that need to be considered here in Australia. ”

In turn, Trilogy is liaising closely with clients and builders, checking they’ve considered delays in the supply chain that could still cause issues down the line—just one example of the way they’re able to head off any potential problems at the pass.

“If your project is successful, our business will follow suit, so we go above and beyond to add value—our lending team leverage their extensive development and construction finance experience to help you complete your project on time and within budget,”Arentz said.

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