subscribe to our newsletter
Pepper-backed offshore lender launches non-resident mortgages

Pepper-backed offshore lender launches non-resident mortgages

A new offshore lender backed by a consortium of major investors has entered the Australian mortgage market and started funding non-resident mortgages.

Blue Lotus Loans this week launched itself as a new platform that provides financing for already-committed non-resident purchasers of Australian residential apartments.

The new funder is backed by a consortium comprising global real estate investors and credit providers including KKR, non-bank lender Pepper and Oaktree Capital Management, L.P. and is now accepting loan applications.

Daniel Pietrzak, a member of global investment giant KKR — which last year acquired non-bank lender Pepper — said that Blue Lotus is uniquely positioned to provide competitive financing options to non-resident buyers looking to settle FIRB-approved purchases of Australian residential apartments.

“We have great conviction in the long-term strength of the Australian real estate market and the important role that non-resident investment has in contributing to the overall supply of housing,” Mr Pietrzak said.

“Blue Lotus provides a real solution for credit-worthy international investors to settle on their pre-sale contracts to the ongoing benefit of Australia’s housing and construction industry.”

The announcement comes after a handful of non-bank lenders have started targeting the non-resident lending space, which was significantly impacted when the major banks largely pulled out of the market in 2015.

Finsure-owned Better Choice Home Loans revealed late last year that it would soon be launching a home loan specifically for non-resident buyers of Australian property.

Meanwhile, Melbourne-based BC Securities, which is part owned by one of Hong Kong’s largest real estate players, told Mortgage Business that it is eager to use the third-party channel to distribute its new line of mortgage products.

BC Securities has launched a suite of mortgage products with a focus on non-residents, self-managed super fund (SMSF) borrowers and Australians who rely on overseas incomes. The company also offers a range of mortgage products from a panel of local lenders including the major banks and building societies.

The Melbourne-based group is owned by its Australian management team and Far East Consortium, a Hong Kong-listed real estate group with a market cap of $1.5 billion (HK$9.3 billion) and real estate projects across the globe.

[Related: Hong Kong-backed lender launches home loans]

Pepper-backed offshore lender launches non-resident mortgages
mortgagebusiness logo

Latest News

A regional bank has revealed its full-year 2018 financial results, reporting a fall in residential mortgage settlements amid “challenging...

Former prime minister John Howard has called on the financial services royal commission to “bear in mind the stability and contribution”...

Macquarie Group has secured a stake in Investa Office Fund (IOF) months after Blackstone submitted a $3.1 billion takeover proposal. ...



LATEST PODCAST: Cash rate to remain unchanged, corporate cops for the banks and a new type of credit card

Do you expect access to credit to get harder this year?