As 2024 draws to a close, we’re taking the time to reflect on a year of accomplishments, market transformations, and relationship-focused lending successes. From funding projects that felt the brunt of construction complications, to celebrating the achievements of our talented team, this year has highlighted the importance of flexibility, trust, and local expertise in the ever-evolving South East Queensland property market.
Project Wins
This year marked the successful completion of White Street at Victoria Point, a project spearheaded by our long-standing, repeat borrower, Robin Johnson of Provincial Building. White Street was one of many projects this year which leveraged GPS’s no presales requirements to commence construction and, as a result, Provincial Building capitalised on the area’s rising market value, ultimately achieving higher sale prices for stock upon completion. Provincial Building is already embarking on their next GPS-funded project at Boat Street, and we are thrilled to continue working alongside him in 2025.
GPS’s funding flexibility was pivotal in restarting stalled construction at Dorset Street, Ashgrove, earlier this year, as we detailed in last month’s case study. As soon as this project passed our desk, we knew that GPS’s relationship-first funding would be needed to work closely with all project stakeholders, including the borrower and new builder, to get the project back on track and completed in time. As a result, Dorset Street is now up and running towards the anticipated early 2025 construction complete date and we’re so excited to see the final product!
When an out-of-state financier abruptly exited a promising project, GPS stepped in to ensure the completion of The Hills – an in-demand development comprising of 12 residential units in Brisbane’s inner suburb or Highgate Hill. Helping The Hills continue construction without delays can be entirely credited to the expert capabilities of our Portfolio Managers, as well as the speed of approval offered by our direct decision-making and funding lines, which offered swift approval turnarounds and progress draws. The Hills is now back in full construction swing with anticipated completion of May 2025.
Celebrating the GPS Team
A Decade of Monica
Our Head of Lending, Monica De Nino, celebrated 10 years with GPS in July. Monica began as a GPS graduate in 2014 before skyrocketing to the lead of our lending team in 2020. Monica’s industry expertise, breadth of industry connections, and relationship-first approach to lending continue to drive GPS’s success.
Welcome Back, Marnie!
After a two-year hiatus to deepen her real estate and development legal expertise, Marnie Woodhead is officially back on board at GPS. Marnie initially joined the team to support our growing team and today her unique blend of legal and portfolio management experience is pivotal in our ability to deliver flexible funding solutions. We’re absolutely thrilled to have Marnie back and she wasted no time in reconnecting with her long-standing borrower network.
Both Monica and Marnie are available now to assist with new projects, and look forward to connecting with new GPS borrowers into 2025 and beyond.
Connect with Monica on Linkedin | Connect with Marnie on Linkedin
GPS Takeaways from 2024
Throughout the year, we covered a number of industry changes and challenges which shaped the market of 2024. With new opportunities on the horizon for 2025 to come, a few lessons from this past year are driving our approach to lending moving forward:
The Narrowing Gap Between Private and Bank Lending
In September, we discussed how the perceived higher cost of private lending has, in fact, never been further from reality. And as the market continues morphs in the current economic landscape, the value of private lending – not just on price, but service, flexibility, LVR, and completion commitment – will become even more evident in 2025. We are aware that the South East Queensland market is evolving beyond the traditional bank lending model, and are confident our approach is already ahead of the change.
Presales, while traditionally seen as a security measure, can cap developers’ profits by locking in prices prematurely. In August, our blog highlighted the advantages that GPS offers borrowers by not requiring presales as a condition of lending, and it is a private lending advantage we will carry with us into the New Year. Many of our borrowers this year have seen, first-hand, the increased realised value that results from not prioritising presales, and in light of South East Queensland continuing market growth, it is a private lending benefit we will continue to offer our valued borrowers who are just looking to get their project off the ground.
Strong partnerships and relationship-focused lending has been at the forefront of GPS’s values since the beginning, and no year has highlighted its value more than 2024. This year, we’ve seen projects requiring increased LVR to support the current construction climate, developers who’ve been abandoned by bank lenders, and borrowers who know that waiting on presales will ultimately leave the project on the cutting room floor. At GPS, we believe in fostering long-term partnerships, not quick wins, and this comes from conversations between the borrower and the lender about what the most beneficial financing approach to their unique development is. This was true when we discussed it in our June blog, and continues to be at the forefront of our approach into 2025.
Turning Challenges into Opportunities
In June, we discussed the ‘get it started’ challenge faced by many of our builders and developers in the wake of shifting government policy and rising construction costs. We know that these setbacks have carried through for many projects this year, which is why we’re prioritising our flexible, solutions-focused approach to lending in 2025. Our in-house funding lines continue to grow, and GPS will always remain a lender with ‘skin in the game’ to give both our borrowers, and investors, continued reassurance that we’re in it to the finish line with our builders and developers.
Looking Ahead
As we prepare to welcome 2025, GPS remains steadfast in our mission to provide tailored funding solutions that empower developers to achieve their goals. The challenges of 2024 have reinforced our belief in the power of adaptability, strong relationships, and a localised approach.
To our valued borrowers, investors, and partners—thank you for your trust and collaboration throughout this year. Here’s to another year of shared success and growth in South East Queensland’s vibrant development landscape.
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