At the heart of the Pallas Capital strategy is investing exclusively in premium-quality Australian real estate, both commercial and residential, in select markets along the Eastern seaboard with excellent supply fundamentals.
Investors
Our Strengths
01
Conservative LVRs
All loans supporting our investments are secured against quality real estate at prudent LVRs, typically 50-70%, and backed by reputable independent valuations less than three months old.
02
Experienced Borrowers
We consider the competence, experience and reputation of the borrower and the underlying sponsor just as carefully as the value of the primary security asset. They are vetted through a detailed due diligence process.
03
Security
All of our loans are backed by First and/or Second Mortgages, along with company and unlimited personal guarantees from the Directors of the borrowing entity.
04
Geographic Selectivity
The Pallas Capital strategy is focused firmly on high demand, high density sites that are typically located on, or within, the inner-city fringes of Sydney and Melbourne.
05
Defined Exit Strategies
As part of our due diligence process, multiple clearly-defined exit strategies are identified from the outset of every loan. These are closely monitored and managed through to loan completion.
06
In-house Knowledge
Through our unique association with Fortis, we bring an intimate appreciation of borrower needs and project risks. Should a ‘worst-case’ scenario ever eventuate, it also means Fortis could be directly engaged to complete a project.
“Our current credit portfolio comprises robust bank-quality loans with proven counterparties, strong security and multiple exit strategies.”
Dan Gallen
Executive Director & CIO, Pallas Capital
Investment Products
Single Asset Investments
Our stand-alone property loans/ investments allow self-directed investors to select the opportunities they participate in based on their own risk/return profile and cash flow considerations. Investors set their own risk parameters and are able to focus on any preferred sub-asset classes or geographic areas.
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7-9%
p.a.
Return with our Senior Debt, Registered First Mortgage investments up to 65% LVR.
12-14%
p.a.
Return with Registered Second Mortgage or Preferred Equity investments up to 75% LVR.
18-24%
p.a.
Forecast return for Ordinary Equity investments in Fortis Development Group projects.
First Mortgage Investment - 9.0% p.a.
Case Study
Brighton, VIC
Type of Finance
First Mortgage
Investor Return
9.0% p.a.
LVR
70.0%
Loan Size
$3.7 million
Term
15 months
Description
Funds will be used to settle the acquisition of the Security Property.
First Mortgage Construction - 9.25% p.a.
Case Study
Rose Bay, NSW
Type of Finance
First Mortgage
Investor Return
9.25% p.a.
LVR
65%
Loan Size
$25 million
Term
16 months
Description
To fund construction of 8 luxury apartments.
First Mortgage Residual Stock - 8.25% p.a.
Case Study
Rose Bay, NSW
Type of Finance
First Mortgage
Investor Return
8.25% p.a.
LVR
65%
Loan Size
$26 million
Term
15 months
Description
Residual stock loan over 15 luxury apartments.
Preferred Equity - 15% p.a.
Case Study
Double Bay, NSW
Type of Finance
Preferred Loan Notes
Investor Return
15% p.a.
LVR
70%
Loan Size
$8 million
Term
18 months
Description
Funds will be used to assist the settlement of the office building together with the refurbishment works.
Ordinary Equity - c. 21.0% IRR
Case Study
Brighton, VIC
Type of Finance
Ordinary Equity
Investor Return
c. 21.0% IRR
LVR
-
Loan Size
$9 million
Term
31 months
Description
To assist in financing the purchase of the property, progress the Planning Permit and complete the construction of the development.
Diversified Funds
Discretionary pooled funds that invest on behalf of our investors into qualifying First and/or Second Mortgage loans. Our First Mortgage funds benefit from the ‘First Loss Capital Protection’ fund feature, which acts as a buffer between investors and underlying equity, further reducing the effective LVR on any individual loan within the trust’s portfolio.
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6.75%
p.a.
Yield to maturity with the Pallas FM Trust 4-year fixed rate note, issued through Austraclear and tradable in the secondary bond market.
7.0%
p.a.
Fixed return with the diversified First Mortgage fund, Pallas Warehouse Trust No.3.
11.0%
p.a.
Fixed return with the diversified First and Second Mortgage fund, Pallas High Yield Fund.
Pallas FM Trust - 6.75% p.a.
Case Study
Fixed Rate Bond
Type of Finance
Fixed rate notes tradeable via Austraclear
Issue Size
Up to $150 million
Maturity Date
December 2024
Coupon
7.5% p.a. payable quarterly in arrears from (and including) the Issue Date until (but excluding) the Maturity Date
Yield to Maturity
Currently 6.75% p.a.
Maximum LVR
65% against any one loan
Pallas Co-Investment
At any given time, an amount in AUD equivalent to 5.0% of face value of issued Bonds (and comprising cash and/or bank guarantee) will be held as a ‘First Loss Capital Protection’ reserve buffer should the Issuer be required to draw upon it in order to meet its financial obligations to note holders
Pallas Warehouse Trust No.3 - 7.0% p.a.
Case Study
Fixed Return
Type of Finance
First Mortgage Fund
Issue Size
Up to $30 million
Maturity Date
December 2022
Investor Return
7.0% p.a.
Maximum LVR
65% against any one loan
Pallas Co-Investment
At any given time, an amount in AUD equivalent to 5.0% of face value of issued Bonds (and comprising cash and/or bank guarantee) will be held as a ‘First Loss Capital Protection’ reserve buffer should the Issuer be required to draw upon it in order to meet its financial obligations to note holders
Pallas High Yield Fund - 11% p.a.
Case Study
Fixed Return
Type of Finance
First and Second Mortgage fund
Issue Size
Up to $20 million
Maturity Date
December 2022
Investor Return
11.0% p.a.
Maximum LVR
75% against any one loan
Speak to one of our advisors to
discuss which of our current
range of opportunities align with
your portfolio requirements.
Enquire
To speak to one of our Directors about investment opportunities that align with your portfolio requirements, please provide your contact details below.
