Cash-rich miners are beating developers in the race to bag commercial property bargains.
Traditional commercial property buyers can’t afford the high levels of equity required by the banks, leaving the market open to cashed-up mining tycoons.
Billionaire miner Clive Palmer made a bid to buy a $45 million office tower in the Gold Coast earlier this month, while coal magnate Nathan Tinkler was eyeing land sites in the Newcastle CBD.
Colliers International director of special projects, Darrell Irwin, told The Australian Financial Review the move by miners is “classical counter-cyclical buying”.
Mr Irwin said there are opportunities to buy sites on the Gold Coast, especially for people who have the funds to wait for the upturn.