Devine is retreating from more than A$1bn worth of Queensland residential projects, as some banks shy away from lending to the Queensland-based developer because of its relationship with Leighton Holdings.
The group yesterday confirmed the Brisbane site earmarked for its iconic $900m French Quarter project in Brisbane was up for sale, with a price tag believed to be more than $80m.
Sources say financiers are erring on the side of caution in situations where, if they lend to a company such as Devine, the banks would be further exposing themselves to a major shareholder, which in this case is Leighton. Leighton owns 57.11% of Devine.
As a result, Devine has been forced to shop around beyond the top four banks to secure finance.
Devine said the move to sell properties was not due to funding issues.