During the GFC we watched the number of active commercial property lenders reduce significantly. Non bank lenders such as ourselves almost disappeared entirely due to either incurring heavy loan losses or because funding models such as mortgage trusts no longer supported by the market. The big Australian banks increased their market share accordingly.
Due to the size, inflexibility and slowness of the Big 4 banks, we saw a significant market opportunity. We reacted by investing in and strengthening Arch’s lending capability, providing a niche product offering competitive with the banks but providing a higher level of service tailored to delivering a loan solution specific to each of our client’s needs. Arch opened a Sydney office and subsequently developed a presence in Brisbane.
Arch’s objective is to become the largest non bank first mortgage commercial property lender in Australia within 5 years.