First Mortgage Pre-Development South Melbourne

Pallas Capital invites eligible investors to participate in this First Mortgage Construction investment opportunity located in South Melbourne, an inner-city suburb in Melbourne.


7.75% p.a.
Investor return net of all fees paid quarterly in arrears
15 months
Loan term, with an anticipated maturity date of June 2023
65% LVR
Of the ‘As if complete’ Market Value

Project Details

The Loan will be used to repay existing indebtedness on the Security Property; Fund construction costs; and Fund Loan Interest and establishment costs.

The Development will comprise the construction of a six storey building comprising five levels of commercial office accommodation over ground floor retail space and basement parking with a car stacker parking system for 25 vehicles.


The Loan amount will comprise of $16,900,000 to be funded by the issuance of Class A Units; and $2,600,000 to be funded by the issuance of Class B Units.
First Registered Mortgage over the Security Property; First Registered General Security Agreement over the Borrower; Personal Guarantees provided by the Personal Guarantors; Corporate Guarantees provided by the Corporate Guarantors; and Tripartite Deed between Lender, Borrower and Builder.
Exit Strategies
Primary: Refinance with a term debt facility; Alternative: Sale of the Security Property

The Location

The property is located within the premium city fringe suburb of South Melbourne, approximately 3km south of the Melbourne CBD.

The development benefits from close proximity to the Clarendon Street retail strip with the South Melbourne Market nearby, providing an eclectic mix of restaurants, cafés and shopping. Recreation reserves and facilities in close proximity include the Lakeside Stadium, Albert Park Lake, Royal Botanic Gardens, Albert Park Golf Course and Fawkner Park.


Nearby Amenities
1) Park Lane Café
2) Clarendon Street Retail Precinct
3) Melbourne Sports Centres
4) Anzac Railway Station

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discuss which of our current
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Call +61 2 9000 5215 now to invest in this opportunity. Alternatively, provide your contact details below to receive the IM.