[et_pb_section fb_built=”1″ disabled_on=”off|off|off” admin_label=”Hero” module_class=”policy-hero” _builder_version=”4.27.4″ _module_preset=”default” locked=”off” collapsed=”off” global_colors_info=”{}”][et_pb_row _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text admin_label=”Title” module_class=”gsap-headings” _builder_version=”4.27.4″ _module_preset=”default” text_text_color=”#FFFFFF” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”Main text” module_class=”section-policy pterms” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_row _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text module_class=”gsap-fadein” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
The property industry thrives on movement \u2014 deals closing, projects launching, tenants signing. But right now, the gears are grinding. Even after the Reserve Bank of Australia<\/a> trimmed the cash rate to 3.60%<\/strong> in August, debt costs remain elevated, keeping pressure on everyone from developers to investors.<\/p>\n In the commercial sector, owners are facing a national office vacancy rate of 14.7%<\/strong> (CBD + non-CBD) \u2014 the highest sustained level in a decade \u2014 despite a post-COVID lift in demand (Property Council Australia, January 2025).<\/p>\n Residential affordability is equally challenging. The latest ANZ CoreLogic Housing Affordability Report shows it now takes the average Sydney household 11.5 years<\/strong> to save a 20% deposit, and eight to ten years nationally.<\/p>\n Layer in geopolitical headwinds \u2014 from new US tariffs disrupting supply chains to conflicts impacting resources \u2014 and the challenge becomes clear: too much capital is trapped in cash deposits and bank guarantees. Bonds offer a way to unlock that capital and put it back to work.<\/p>\n For decades, the property industry has accepted that securing a transaction means locking away significant cash. But in other sectors \u2014 like construction and energy \u2014 financial guarantees have evolved beyond this. Now, property is catching up.<\/p>\n Credeq operates as a Managing General Agent and its Deposit Bonds and Lease Bonds are underwritten by HDI Global Specialty SE<\/strong>, whose Standard & Poor\u2019s AA- rated<\/strong> financial guarantee underpins both Deposit Bonds and Lease Bonds in Australia and New Zealand. With 35 years of global credit insurance expertise, we\u2019ve adapted a proven tool to meet the property industry\u2019s needs.<\/p>\n Deposit and Lease Bonds<\/strong> guarantee payment to a vendor or landlord if a purchaser or tenant defaults. Unlike traditional cash or bank guarantees, they:<\/p>\n The result is faster movement of capital \u2014 and faster deals.<\/p>\n Every developer knows the golden rule: the faster you sell, the faster you build. And the sooner you build, the more predictable your returns. But too often, otherwise-qualified buyers stall at the deposit stage because their cash is tied up in equity or investments.<\/p>\n Deposit Power\u2019s long-term deposit bonds \u2014 available for up to 66 months<\/strong> and backed by an AA- rated insurer<\/strong> \u2014 give buyers the same security as cash deposits without locking up their funds. They work across off-the-plan properties, house-and-land packages, and unregistered land.<\/p>\n Benefits for developers and asset managers:<\/strong><\/p>\n For asset managers pre-selling stock, that certainty can mean the difference between meeting targets this quarter or falling short.<\/p>\n Vacancy is costly, and in a market where 14%<\/strong> of office space sits empty, landlords need every advantage. Traditional bank guarantees require tenants to lock away large sums of cash \u2014 often the equivalent of 6\u201312 months\u2019 rent \u2014 and that makes deals harder to close.<\/p>\n eGuarantee Lease Bonds<\/strong> flip that model. Landlords get the same security, backed by an AA- rated insurer, without the tenant having to immobilise cash. The benefits are clear:<\/p>\n Liquidity matters. During COVID, businesses with more than the average 27 buffer days were the ones able to pivot and survive. Lease Bonds can boost tenant cash reserves by up to 200%<\/strong>, shorten negotiations, and reduce incentives needed to close a lease.<\/p>\n Whether you\u2019re selling residential stock or leasing commercial space, the same principles apply: remove friction, improve liquidity, and deals move faster. Modern bonds deliver exactly that, along with:<\/p>\n Think of modern bonds as an upgrade to the way your portfolio handles security \u2014 one that can free capital, widen your buyer and tenant base, and make your assets more competitive. Here\u2019s where to begin:<\/p>\n Whether you manage a CBD tower or an off-the-plan residential project, modern bonds turn idle collateral into active capital. They protect your position, accelerate your pipeline, and add flexibility to every deal.<\/p>\n In 2025\u2019s tight market, where every basis point and every day counts, modern bonds aren\u2019t just an alternative \u2014 they\u2019re an advantage.<\/p>\n [\/et_pb_text][et_pb_code admin_label=”Button” module_class=”tcenter gsap-fadein” _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”70px||||false|false” global_colors_info=”{}”]Deposit Power<\/a>eGuarantee<\/a>[\/et_pb_code][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”Unlocking credit” module_class=”section-unlock” _builder_version=”4.27.4″ _module_preset=”default” global_module=”1604″ saved_tabs=”all” locked=”off” collapsed=”on” global_colors_info=”{}”][et_pb_row _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text module_class=”gsap-fade” _builder_version=”4.27.4″ _module_preset=”default” animation_style=”fade” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Deposit and Lease Bonds, the fuel for the Property industry’s growth Why senior property leaders should consider depositand lease bonds in 2025 1. Economic Pressure Is Squeezing Capital on Both Sides of the Ledger The property industry thrives on movement \u2014 deals closing, projects launching, tenants signing. But right now, the gears are grinding. Even […]<\/p>\n","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"class_list":["post-2376","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/credeq.com\/au\/wp-json\/wp\/v2\/pages\/2376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/credeq.com\/au\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/credeq.com\/au\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/credeq.com\/au\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/credeq.com\/au\/wp-json\/wp\/v2\/comments?post=2376"}],"version-history":[{"count":0,"href":"https:\/\/credeq.com\/au\/wp-json\/wp\/v2\/pages\/2376\/revisions"}],"wp:attachment":[{"href":"https:\/\/credeq.com\/au\/wp-json\/wp\/v2\/media?parent=2376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}2. Bonds: What are they and how do they work? <\/strong><\/h3>\n
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3. Deposit Power: Accelerating Residential Deals and Off-the-plan sales<\/strong><\/h3>\n
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4. eGuarantee\u2019s Lease Bond Solution is built for Commercial Leasing<\/strong><\/h3>\n
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\n \n Benefits to Landlord<\/h3>\n<\/td>\n
\n Impact<\/h3>\n<\/td>\n<\/tr>\n
\n No cost to landlord<\/strong> \u2013 the tenant pays a small annual premium<\/td>\n Protects Net Operating Income and simplifies budgeting<\/td>\n<\/tr>\n \n Digitised, encrypted platform<\/strong><\/td>\n Eliminates paper guarantees and manual expiry tracking and potential fraud or loss<\/td>\n<\/tr>\n \n Guaranteed, on-demand payout<\/strong> from an S&P AA-<\/em> rated insurer<\/td>\n Reduces counterparty risk and speeds claim recovery<\/td>\n<\/tr>\n \n Tenant cash freed up<\/strong> (often 6-12 months\u2019 rent)<\/td>\n Enhances tenant attraction and retention in a 14 % vacancy market<\/td>\n<\/tr>\n \n No more compromise <\/strong>\u2013 Landlords can get the coverage they need<\/td>\n Tenants & landlords have more flexibility when there is no cash collateral required<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n 5. Strategic Uplift for Asset Owners<\/strong><\/h3>\n
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6. How do you get started?<\/strong><\/h3>\n
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Unlocking credit the world needs<\/span><\/h2>\n