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This article was originally posted by The Adviser on October 23, 2020

Broker-run platform secures $64.5m development deal

This article was originally posted by The Adviser on October 23, 2020.

An online financing platform co-founded by Victoria-based broker Marshall Condon has secured funding for a major property development project in Melbourne.

Australian development finance platform Wefund has brokered a $64.5-million deal to fund the construction of a 20-level development in Melbourne.

According to Marshall Condon, a broker who co-founded Wefund in October 2019 – an online platform which matches borrowers to lenders and brokers – the group bypassed obstacles facing property developers seeking finance via traditional channels.

“The Australian property development finance sector is bogged down with time-consuming loan application processes. In many cases, it also lacks transparency and integrity,” he said.

“This means borrowers often face hidden fees, exhaustive application processes, or offers being amended at the last minute.

“We are incredibly pleased that our unique and innovative Australian-developed platform, together with our talented credit team, has delivered a great result for our client.”

Mr Condon added that the deal was further evidence of Wefund’s ability to withstand disruption caused by the COVID-19 crisis, providing borrowers with viable financing alternatives amid increased scrutiny from established lenders.

Bill McWilliams, investment director at Maxcap, which received the $64.5-million facility with a loan-to-value ratio of up to 60 per cent for the Melbourne development, lauded Wefund’s offering.

“Working with Wefund to secure this transaction has been a refreshing process. Their platform gave us all the information we needed in the first instance to provide an offer back to the client much quicker than traditional methods,” he said.