Most asset classes across the Western world now offer much lower yields than they did in previous years. This has left a large pool of investors, affluent and well informed, with capital that cannot be satisfactorily deployed.
What we do
Pallas offers a range of high yield, property-backed investment opportunities for these investors.
Pallas Capital operates a highly successful team of professionals and market experts, who originate property backed investment opportunities for sophisticated investors looking for high yield with relatively low risk. Each Pallas Capital investment is a participation in a stand-alone property loan or property development project.
This allows our investors to choose their own risk/return profile, to arrange their investments so as to fit in with their cash-flow requirements, to set their own risk parameters and to focus on preferred asset classes or geographic areas.
What we offer
We offer a range of investment types, including participations in:
Loans supported by registered first mortgages, typically returning about 8% – 10% per annum net to our investors.
Loans supported by registered second mortgages, typically returning between 12% – 14% per annum net to our investors.
Preference equity or mezzanine debt, typically returning about 13% – 18% per annum net to our investors.
Our loan participations and preference equity investments are for terms of 6 months to 18 months, with interest paid monthly or quarterly in arrears.
How we manage risk
Our investments have a number of features in common, which enable us to manage the risk to our investors:
All of the loans supporting our investments are well-secured against real estate at a prudent LVR (typically 50-70%), supported by a recent valuation by a reputable valuer.
All of our borrowers and project sponsors are experienced and with a strong track-record; usually we will hold unlimited personal guarantees from high net-worth individuals sponsoring the borrower or developer.
All of the loans and development projects are actively managed by our team, which has always returned capital and the agreed income yield to our investors.