Australian unlisted property companies, facing a funding gap as banks cut back on loans, may turn to alternative investors such as hedge funds as they seek to repay maturing debt, according to Nomura.

Lenders including Westpac Banking reduced commercial mortgages amid the worst global recession since World War II. Leda Holdings, a privately- held Australian real estate developer, hasn’t been able to obtain loans from banks to repay A$300m of commercial mortgage-backed bonds due next week, it said 16 Feb.