With tighter lending criteria making Australia's big banks investment shy, non-bank lenders are stepping up to fund apartment developments in Brisbane.

Skytower, the next tallest tower to be built in Brisbane, will rise thanks to US money after Australia's banks have shied away.

US funds giant Invesco has lent about $150 million to AMP Capital and Billbergia to develop a 90 storey tower which will have 1128 apartments. The Australian Financial Review reported that the deal has been struck on a very high interest rate of 15 to 20 per cent.  Invesco is a global funds giant which has about $US770 billion under management. 

Billbergia purchased the Skytower site in a receivership sale during the financial crisis. AMP funded Billbergia's $40 million acquisition of the site, previously known as the Vision tower, from collapsed company Austcorp, and has since converted the $27 million loan on the property into an equity stake. 

Skytower has had strong sales, with more than 900 apartments, or 80 per cent of the tower sold. Once complete it will be the third tallest in Australia. The first stage of the tower is expected to reach level 16 in August 2017.

Credit Suisse, who also looked at the Skytower opportunity, have lent apartment developers Metro Property Developments $65 million. Metro accounts for about 32 per cent of the inner Brisbane apartment market. 

Other financiers that are actively looking at development finance include the global private equity style investors such as Pacific Alliance Group and LaSalle. 

See also:

New HoldenCAPITAL report describes non-bank funding landscape

The changing shape of Brisbane's apartment market 

What has changed in 5 years in Brisbane's apartment market? 

A boutique Brisbane apartment is a sound investment