Perth-based Kebbel Investment Bank has kept a remarkably low profile in the four years since its inception, raising more than $700 million and having been involved in property projects totalling between $2 billion and $3 billion.
Perth-based Kebbel Investment Bank has kept a remarkably low profile in the four years since its inception, raising more than $700 million and having been involved in property projects totalling between $2 billion and $3 billion.
Perth-based Kebbel Investment Bank has kept a remarkably low profile in the four years since its inception, raising more than $700 million and having been involved in property projects totalling between $2 billion and $3 billion.
Executive director Simon Bell said the operation’s somewhat discreet approach was deliberate and that Kebbel had never had to advertise for business.
“We don’t go out looking for projects; the demand outstrips the supply for what we do. For every six projects we take on we would look at 100 potential projects,” Mr Bell said.
With a background in accounting, stock broking and property funds management, Mr Bell started Kebbel with business partner Richard Beck in 2001.
Mr Beck founded commercial real estate practice Jardine Flemming before becoming the CEO of Hooker Corp for eight years, and as chairman at Westpoint.
“We have worked together the last eight or nine years in property funds management and have built the business on that backbone where I do the product development and Richard does the product distribution,” Mr Bell said.
Essentially providing mezzanine finance for developers, Mr Bell said the key was to find projects where risk could be strongly controlled.
“We are shifting our focus to residential land subdivision and won’t look at projects over about $8 to $9 million because that becomes too risky,” he said.
“Land seems to contain the least risk in the cycle at the moment. But with the silly prices some amateur developers are paying for apartment sites and with construction costs up, no doubt some of those projects will fall over in the next few months and there will be opportunities to take them over.
“We look for projects which we can mitigate risk on, and with up to a 24-month time exposure, but beyond that things become unpredictable.”
Kebbel’s projects in Perth include the Riverside Pier Hotel on Barrack Street Jetty, residential apartments in Cottesloe and West Perth, and commercial developments in Subiaco and Belmont
Kebbel’s primary role is to fund developments and give retail investors the opportunity to participate in something they otherwise would not, Mr Bell said.
Kebbel now has offices in Melbourne, Sydney, Brisbane and Auckland, with another opening in Hobart later this year.
Expansion plans include the creation of a pooled investment trust later this year.