Bankwest explains MR lending policy
Following the report on the 8 September ARAMA Gold Coast meeting, which all management rights lending banks were invited to attend and advise as to their lending policies in light of the Gallery Vie decision, Bankwest has responded to the statements made in accomnews.
“To quote ‘not accepting any new to bank applications’ is untrue,” Bankwest’s director – management rights and accommodation Peter Child told accomnews.
“This can be confirmed by a number of transactions we currently have in the settlement process and requiring EGM approval to amended the termination provision.
“At this point in time and unchanged since the bank undertook a review on lending to management rights, in July and post Gallery Vie:
- Existing clients borrowing in the same entity, the bank will consider lending up to 70 per cent without the requirement to amend the termination provision;
- For new to bank clients, the bank will lend up to 70 per cent with a requirement that the termination provision to be amended by EGM,” Mr Child said.
Martin Punch of Short Punch & Greatorix, who provided the detail of the meeting to accomnews said, “I anticipated some banks would not like being shown as recalcitrants, in their post Gallery Vie lending. At least they have now made a commitment that you can quote as coming from the horse’s mouth.
“It would be nice for them to be more detailed about what applications they are accepting, especially from buyers new to management rights.”
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