First Mortgage Construction 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.


8.0% p.a.
Investor return net of all fees paid quarterly in arrears
10 months
Loan term, with settlement completed March 2021
65% LVR
Of the ‘as if complete’ Gross Realisation Value

Project Details

The purpose of the loan is to assist with the refinance of the existing debt against the Security Property and to fund the construction of the commercial building and tenancy fit-outs. The development, known as ‘Pallas House Melbourne’, will be an eight storey A grade commercial office building, with ground floor retail anchoring and basement car parking for 22 vehicles. Construction commenced on 1 March 2021 with an estimated Practical Completion date in July 2022.


$22.9m First Mortgage Construction Loan. The Loan will be progressively drawn as construction works are completed.
First ranking Registered Mortgage over the Security Property; first ranking GSA over the Borrower; Corporate Guarantees from the unit holders of the Borrower; Personal Guarantees; and Tripartite Deed between the Borrower, Builder and Lender.
Exit Strategies
First: Refinance into an investment facility upon completion of the Development. Second: Sale of the completed Development.

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) The Kettle Black Café
2) Melbourne Grammar School
3) Royal Botanic Gardens
4) Clarendon Street Retail Precinct

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discuss which of our current
range of opportunities align with
your portfolio requirements.

To speak to one of our Directors about investment opportunities that align with your portfolio requirements, please provide your contact details below.

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