Rick Impala has been appointed director of capital and investment with Kokoda Property, a new role that has been created to navigate the complexities of the current funding climate and to manage the developer's rapidly expanding portfolio.

Kokoda Property increased turnover by nearly 300 per cent in the last two years, and in that time the funding atmosphere has become significantly more complicated. Kokoda has appointed the specialist, Impala, to manage the company's progress.

Impala spoke to SCHWARTZWILLIAMS. 

You’ve been appointed Director of Capital and Investment at Kokoda. This is a new role. Can you tell us about the changes in the lending environment that have necessitated creating this role?

Kokoda Property’s growing pipeline of development projects across Melbourne, Brisbane and Sydney resulted in the need for a commercial real estate debt specialist, especially against a backdrop of an increasingly challenging funding environment. 

Historically, the Australian property development market has been dependent on big banks for commercial real estate lending. However, over the past 18 months, the market has witnessed a systemic shift whereby regulation has led to the major banks being required to hold larger capital levels.

This has also been coupled by an overall easing of the major banks’ lending requirements and a significant shift in attitude and appetite with many of the banks significantly reducing their loan to cost and loan to value ratios as well as a general tightening of the pre-sale requirements.

What skills and experience do you bring to the role?

I bring approximately 17 years of experience in real estate and infrastructure debt, having held Director level positions at ANZ, Westpac and Standard & Poor’s. More recently, my time at MaxCap Group involved the origination of real estate finance transactions across the full capital stack ranging from senior debt, mezzanine debt to preferred equity. A specific realm of focus related to the provision of stretched senior debt on development projects which provided borrowers with an alternative capital source, post a reduction in leverage and appetite from traditional senior debt financiers.  

Have tighter lending requirements caused a slowdown in demand for Kokoda’s apartments? 

Kokoda Property stands for quality and its target buyer market continues to be predominately owner-occupiers. The general slowdown in the velocity of sales is an opportunity as its those higher end-purchasers who are now driving the demand. The reality is that fewer projects are going to market, but the ones moving forward are of exceptional quality and designed to appeal to this new cohort of buyers, to which Kokoda Property is well placed to benefit from.

Will tighter lending constrain Kokoda’s plans over the next 12-24 months?

Kokoda Property is currently in discussion with a number of local and offshore private lending groups who are looking to partner with us on our upcoming residential projects.

Notwithstanding the growth in alternative funders, the major banks will continue to play an important role in Kokoda Property’s strategy to develop boutique projects of exceptional quality and in well located inner suburbs throughout Melbourne, Brisbane and Sydney.

Read more about the current lending environment:

Lending restrictions mean fewer projects will proceed to construction: JLL

Can a lender stop my funding mid construction?

Fewer loans are being issued to investors