Blackstone Group (BX.N) has snapped up an 80-percent stake in property financing company La Trobe Financial for an undisclosed amount, in a move that will help the New York-based investment giant expand in Australia’s lucrative mortgage-lending market.

This deal comes as Australia’s push to control a bubble in its red-hot housing market, by reining in bank lending, forces some property developers in the country to look outside the regular banking system to secure financing.

The Blackstone-La Trobe partnership aims to focus on the A$1.7 trillion Australian mortgage loan market and service small to medium enterprises “who are finding it increasingly difficult to obtain credit from the traditional bank sources”, the companies said in a joint statement on Monday.

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