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Malaysian developer turns to foreign banks for funding

Finance Markets / Latest Activity

Australia

Mar 23 2018

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Four offshore banks will fund Malaysian developer OSK Property’s $2.8 billion Melbourne Square project. 

The group was unable to secure funding from Australia banks for $2.8 million dollar development. 

The move reflects a trend of foreign banks taking a larger role in the market, while local institutions have become more conservative, restricting lending to both individual buyers and large developers

OSK Holdings executive chairman Tan Sri Ong Leong Huat told The Australian the group had spoken to Australian banks initially, but received a more positive response from foreign banks. 

Malaysia’s Maybank, ICBC, Bank of China and Standard Chartered have provided the funding with the Employees Provident Fund Malaysia taking a 49 per cent stake.

Earlier this month, Far East Consortium received loans for its West Side Place development in Melbourne from ANZ and international banks ICBC, UOB, Fubon Bank, BEA and BOC.

Tan Sri Ong said he wasn’t concerned about an oversupply of inner-city apartments, referring to strong migration to Melbourne from within Australia as well as from overseas. 

Photo by Clem Onojeghuo on Unsplash

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