Despite a raft of builders’ collapsing, Australia's largest retail bank is not cutting back on supporting the retirement living sector.
Queensland construction company LDC was placed into administration in January with debts of more than $7 million, Porter Davis Homes Group collapsed in March with debts of at least $100 million, and PBS Building went into liquidation with debts over $40 million.
Building Industry Credit Bureau data indicates insolvencies in the sector are trending to surpass 2,000 for the 12 months to the end of June – the highest in more than a decade.
A report in The Australian claimed a “top four bank is so petrified by the financial state of so many builders that it has suspended all lending on new homes to be built”.
Clearly it is not CBA.
“There is a strong need for more accommodation and facilities for older Australians and there is an undersupply of development to cater for Australia’s ageing population,” said Albert Naffah, CommBank Health CEO
“CBA is continuing to support the seniors living sector by financing the construction of aged care residences, retirement villages and land lease communities and we have appetite to grow in this sector.
“CBA has rigorous assessment processes for construction loans across all sectors. We work closely and collaboratively with our customers around their credit needs.”
