- The fund achieved the milestone in just three months
- Loan sizes range from $1M to $15M
- Demand for their product is expected to increase more
Specialist property lender Pallas Capital has announced it underwrote over $100 million in transactions through its Pallas Funding Trust (PFT) lending vehicle.
Established only in November 2021, it had a total funding of $530 million approved by its funding partners, Pallas Group and Credit Suisse. Developer Fortis forms part of Pallas Group.
The trust was deployed across a variety of loan types such as to competed residential projects, future development sites and investment projects across Melbourne, Sydney, Brisbane and Adelaide, including industrial properties and apartments.
Loan sizes range from $1 million to $15 million.
Steve Lawrence, executive director of lending at Pallas Capital, said the PFT had been seeded with high-quality during the three months the vehicle began
“Our broker and borrower clients see Pallas as an attractive alternative to the banks, given PFT’s competitive interest rates, flexible leverage options and market-leading service proposition.
“Our brokers have full confidence that Pallas Capital delivers in a lending environment that is fraught with over promising and under delivery.
“All of these factors will see demand for PFT and the suite of Pallas Capital products continue strongly with 2022 predicted to be a record year for lending volumes.”
Pallas Capital said it expects the robust demand to accelerate due to their relationships with brokers and borrowers that specialise in the mid-market commercial real estate space.
While all PFT loans are backed by a registered first mortgage, Pallas Capital can provide additional funding through other offerings such as second mortgage loans through the Pallas High Yield Fund.
How do the loans work?
Pallas Capital, which is one of the fastest-growing structured property investment arrangers in Australia, offers broker and developers lending solutions.
Borrowers are offered five core loan types which include acquisitions construction, residual stock and vacant land loads, along with the flexibility to negotiate LVRs and pre-sales for construction loans.
Funds for loans are secured against non-specialised property assets with values in the vicinity of $1 – $50 million in the major capital cities. Currently, their fixed rates returns range from 5.5% for their Pallas Short Term Fund to 15% for preference equity.