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Bidvest Bank raises ceiling on commercial property loans

By Bidvest Bank

Bidvest Bank announced today (1 August 2013) that it has raised its ceiling on commercial property loans from R50 million to R200 million with immediate effect.

The bank’s asset-based finance and vehicle leasing division is a relatively recent entrant to commercial property lending, but says demand in the sector and the growth of its overall lending book warrant wider exposure.

It lends to property investors, occupiers of rented premises looking to buy, owners looking to expand business premises and developers able to collateralise properties from their established portfolio.

The fast-growing Bidvest Bank division does not proactively target developers for purposes of property development and maintains strict focus on commercial and industrial premises.

“We have strong lending appetite in the retail, office, factory and warehousing space,” says Byron Corcoran, head of asset-based finance at Bidvest Bank. “However, we have no desire to extend our activities to the residential segment of the market at this stage. We see sufficient growth potential in our preferred area of focus in the commercial sector.”

“We have seen a trend for entrepreneurs and mid-size businesses to revisit their leasing arrangements with a view to buying their premises.

“This may be a response to the low interest rate environment, but it is also a positive signal for the economy at large as it indicates that many businesses are sufficiently confident about prospects to put down roots.”