THE Australian property sector has not given up on the Rudd Bank scheme and believes it could still proceed despite being voted down in the Senate this week by the Coalition and Greens.
"Don't write it off yet," APN Property Group chief executive David Blight said. "I don't think this issue is over."
The Australian Direct Property Investment Association, the peak body representing the unlisted property sector, also anticipated that the Rudd government would announce an alternate strategy to help commercial property businesses secure funding.
President Linden Toll said current lending practices were hurting the industry. Bank margins were blowing out to the highest in a decade or more.
"Property markets continue along, effectively hamstrung by current practices," he said.
The Australian Business Investment Partnership, otherwise known as Rudd Bank, was proposed at the beginning of the year to bridge the funding gap should foreign financiers leave the market amid the global financial crisis.
The scheme for property developers would involve initial capital of $4 billion -- $2bn from the government and $2bn from the big banks, which would sit on the board.
The government's commercial property bailout fund was voted down in the Senate on Tuesday by the Coalition and Greens after the government rejected a Greens demand to cap at $1 million the salaries of banking and property executives whose companies would benefit from the plan.
Among those keen to draw money from the ABIP was Precision Group chief executive Shaun Bonett.
He had hoped to tap the funding pool for his retail project, at Chatswood on Sydney's north shore, which had been funded by collapsed investment bank Babcock & Brown and troubled Queensland lender Suncorp.
"I supported it and ... it was something we might consider," Mr Bonett said.
"It means now I really need to focus on my existing financiers and trying to work through putting meaningful proposals to them," he added, referring to Commonwealth Bank and National Australia Bank.
Colonial First State Property property head Darren Steinberg said there was little detail about the scheme, which he believed was probably targeted more at second-tier players.
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Jenny
"Don't write it off yet," APN Property Group chief executive David Blight said. "I don't think this issue is over."
The Australian Direct Property Investment Association, the peak body representing the unlisted property sector, also anticipated that the Rudd government would announce an alternate strategy to help commercial property businesses secure funding.
President Linden Toll said current lending practices were hurting the industry. Bank margins were blowing out to the highest in a decade or more.
"Property markets continue along, effectively hamstrung by current practices," he said.
The Australian Business Investment Partnership, otherwise known as Rudd Bank, was proposed at the beginning of the year to bridge the funding gap should foreign financiers leave the market amid the global financial crisis.
The scheme for property developers would involve initial capital of $4 billion -- $2bn from the government and $2bn from the big banks, which would sit on the board.
The government's commercial property bailout fund was voted down in the Senate on Tuesday by the Coalition and Greens after the government rejected a Greens demand to cap at $1 million the salaries of banking and property executives whose companies would benefit from the plan.
Among those keen to draw money from the ABIP was Precision Group chief executive Shaun Bonett.
He had hoped to tap the funding pool for his retail project, at Chatswood on Sydney's north shore, which had been funded by collapsed investment bank Babcock & Brown and troubled Queensland lender Suncorp.
"I supported it and ... it was something we might consider," Mr Bonett said.
"It means now I really need to focus on my existing financiers and trying to work through putting meaningful proposals to them," he added, referring to Commonwealth Bank and National Australia Bank.
Colonial First State Property property head Darren Steinberg said there was little detail about the scheme, which he believed was probably targeted more at second-tier players.
Read more ...
Jenny