On Friday 8 August, Pallas Capital brought together a small group of brokers, borrowers, and industry professionals for a private evening of insight and connection. Set against the backdrop of a premium Penfolds wine experience, the event offered more than just fine vintages, it delivered sharp perspectives on the evolving dynamics of property finance, feasibility, and construction risk.
The evening opened with a warm welcome and a clear message: in today’s market, relationships and real-world understanding matter more than ever. Attendees heard from Dan Gallan, Executive Director and CIO at Pallas Capital, Danny Hayter, Director at Balmain & Co, and Blanco Norton, Director and Founder of Legacy PM and Wickton. Each speaker brought a distinct lens to the conversation, but a common theme emerged, brokers are no longer just dealmakers; they are strategic advisors, translators, and relationship builders.
Dan Gallan, led a compelling discussion on the differences between non-bank and bank lending. He challenged brokers to rethink how they present deals, emphasising that non-bank lenders operate with a more flexible and commercially-minded risk appetite. This allows for faster decisions and tailored funding solutions, but it also requires brokers to recalibrate their approach. Rather than relying on traditional checklists, brokers must highlight project potential and understand the nuances of non-bank structures. He noted that misconceptions around non-bank processes often lead to misaligned expectations, underscoring the need for better education around deal structuring. He also stressed that while non-banks move quickly, they still demand rigorous due diligence, and brokers who prepare thoroughly and communicate clearly are best positioned to build trust and long-term relationships.
Blanco Norton brought the conversation into the realm of feasibility and delivery. Drawing from his experience in project management, he outlined the blind spots that often undermine feasibility models, from unrealistic cost assumptions to overly optimistic timelines. In volatile conditions, he argued, stress testing is essential. Norton encouraged brokers to challenge assumptions collaboratively with lenders and developers, helping to bridge the gap between ambition and reality. He also addressed the common conflicts that arise over defects, delays, and bank guarantees, noting that early alignment between stakeholders is key to avoiding costly disputes. From his perspective, a bankable project is one with clear scope, realistic timelines, strong governance, and transparent reporting — and brokers play a critical role in shaping that narrative.
Danny Hayter closed the panel with a candid look at construction risk and delivery. He described how cost volatility and labour shortages have reshaped the risk profile of commercial projects, urging brokers to ask deeper questions about builder capacity and contingency planning. Fixed-price contracts, once a staple of construction finance, are now fraught with risk. Hayter emphasised the importance of trust and transparency when projects go off-plan, and highlighted the evolving role of builders in early-stage planning. In Melbourne, he noted, the market is shifting toward mixed-use and adaptive reuse developments, where cost control and delivery certainty are paramount.
Throughout the evening, cross-panel insights reinforced the importance of high-trust relationships and aligned incentives. Brokers were encouraged to move away from over-promising and under-preparing, and instead focus on deep understanding, clear communication, and strategic deal shaping. The market outlook remains cautiously optimistic, with resilient demand for well-located, well-conceived developments. For brokers willing to invest in long-term relationships and proactive collaboration, the opportunities are significant.
As the final glasses of Penfolds were poured and conversations lingered into the evening, one thing was clear: in a complex and fast-moving market, having the right insights and the right people around you makes all the difference.
Disclaimer: General information only. Pallas Capital’s lending activities are limited to writing loans for business and/or investment purposes only. The consumer credit protections in the National Credit Code do not apply.
