Triguboff lashes bank By Richard Gluyas May 06, 2005
SYDNEY'S biggest apartment developer, Harry Triguboff, has taken aim at Westpac over the bank giving inner-city apartment lending a wide berth. The billionaire developer who is group chairman of Meriton Apartments also took exception to Westpac chief David Morgan's comments yesterday that the housing slowdown would create "pockets of ugliness".
Announcing Westpac's record $1.33 billion profit for the March half-year, Mr Morgan said the housing boom had been longer and stronger than any period since World War II, with nominal prices up 125 per cent.
The downturn would be "orderly" but "pockets of ugliness" were likely to emerge in inner-city apartment lending, as well as in riskier low-document loans where purchasers don't necessarily declare their income, Mr Morgan said.
"(Westpac) will not be immune but it will be inconsequential for us."
Mr Triguboff, whose wealth was estimated last year at $2 billion, condemned Westpac's avoidance of apartment lending.
"How can he (Mr Morgan) expect Sydney to be developed without high-rise? He can't," Mr Triguboff said. "Does Sydney just stop? There are only five banks in Australia. If Sydney stops and collapses, Australia stops and collapses with it.
"What happens to people who bought a unit before and they want to sell it now but the market collapses because he (Mr Morgan) won't lend?"
Data released earlier this week showed that home approvals had slumped to their lowest level in almost four years after the March interest rate hike.
The number of apartments given the go-ahead in March slumped 21 per cent, with unit approvals in NSW halving.
Mr Morgan responded to the comments by saying he had a duty of care to Westpac's customers and shareholders.
