- The fund invests in registered first mortgages over premium real estate assets
- Minimum invest term is six months; can withdraw or reinvest each quarter
- Pallas is one of the fast growing property investment mangers in Australia
Non-bank lender Pallas Capital has announced its first short-term investment fund.
The Pallas Short Term Fund, which offers 5.5% interest per annum to investors, is an open-ended mortgage loan warehouse facility.
The fund only invests in registered first mortgages over premium real estate assets across Sydney, Melbourne and Brisbane. Each loan has a maximum lending to valuation ratio of 65%.
The minimum investment term is six months; after that investors can either withdraw or reinvest at each quarterly window.
Initially, Pallas hopes to raise $50 million, with the capacity to increase if required. Strong interest from their established investor network is anticipated by Pallas.
“Our high-net-worth investors, family offices, wealth advisers and institutional investors have been looking for a fund offering a shorter-term investment commitment but still backed by registered property mortgages,” said Mark Spring, Pallas Group director.
“Although this will require very active management by us, to match fund assets against a relatively short investment commitment, Pallas Capital now has a loan book of sufficient size and differentiation to make this possible.”
Mr Spring added that thanks to the wide range of investment offerings by Pallas Capital, total funds under management have increased by over 75% annually.
One of Australia’s fastest-growing structured property investment arrangers, Pallas offers wholesale and sophisticated investors opportunities backed by commercial real estate.
This includes fixed-rate returns ranging from 5.5% pa in the short-term fund to 6.75% per annum for first mortgages and up to 15% per annum preference equity.
Pallas manages funds for loans secured against a range of non-specialised property assets – primarily premium city fringe assets worth between $2 to $50 million – across Sydney, Melbourne and Brisbane.
The loans are actively managed by the team throughout the term, with detailed due diligence on the borrower, along with an exit strategy that is realistic and multi-faceted.
Founded in 2016, Palls reached $1 billion in cumulative transactions during mid-2021, and announced the establishment of its Pallas Funding Trust (PFT) last November.
