Global investment bank Goldman Sachs has agreed to lend $120 million to Kokoda Property to finance the Chester & Ella development in Newstead, Brisbane.

The deal is one of Brisbane’s largest non-bank deals in the last 12 months, and Goldman Sachs’ first deal worth more than $100 million in Brisbane.

Goldman Sach's entry to the Australian property lending market comes as APRA clamps down on the big four banks' lending practices, which has curtailed developers' efforts to proceed with projects.

Kokoda Property’s director of capital and investment, Rick Impala, said the US Investment bank’s decision to partner with Kokoda confirms the bank's desire to align itself with well-credentialed local developers.

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“The regulatory restrictions imposed on the major banks in recent times has opened new opportunities," said Impala.

"The level of due diligence, credit review and documentation performed by Goldman Sachs was as robust and thorough as compared to what would otherwise be exercised by a major bank,” he said.

The funding suggests that Goldman Sachs has a positive outlook for the Brisbane market. The Australian Financial Review reports that the deal was struck on an all-in lending cost of 9 per cent.

Kokoda Property is preparing to launch its third project in 18 months in the growing city, and says that Goldman Sacks has expressed "early interest" in partnering with the developer on future projects.

Kokoda Property founder and managing director, Mark Stevens, said, “International players are realising what astute developers in Australia already know – the property market in Brisbane is underrated, and it is the city to watch.

“There is currently over $40 billion worth of public and private infrastructure planned for Brisbane, including the $1.3 billion Brisbane Airport Second Runway, the $1.5 billion Metro Transport System, and the $3 billion Queens Wharf project, all of which marks an incredible transformation that will come to fruition in the next five to ten years," he said.

The Chester & Ella development is a 320-apartment development with twin towers. In stage one, Chester generated $95 million worth of sales in four weeks, and stage two, Ella, generated $14 million in one transaction, and a further $22 million in sales over its launch weekend in November.

Read more about Kokoda and the Brisbane property market:

Get to know Rick Impala, new project funding specialist with Kokoda Property

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$18 billion worth of infrastructure investment for Brisbane