Pallas Capital, backed by investors including Goldman Sachs and Ares Capital Management, is growing its lending platform.
Commercial real estate financier Pallas Capital has expanded its private lending services into South Australia, opening a new office in the Adelaide CBD, Green Street News can reveal. One of Australia’s major private lending players, Sydney-based Pallas has an investment book totaling nearly $3bn and has originated over 1,000 loans worth nearly $8bn since it was established in 2016. Funded by institutions including Goldman Sachs and NYSE-listed alternative investment firm Ares Management Corp.
An increase in demand for bespoke and flexible private loans in the South Australian commercial real estate sector was the catalyst for this expansion, Pallas told Green Street News.
Pallas traditionally has backed residential projects in Sydney’s affluent Sydney eastern suburbs but has now expanded into financing similar projects in other states and New Zealand. To grow its South Australian portfolio, the group has hired Micheal Fenton, the Head of Development finance at Credit Union in South Australia, to head up new loan origination. Fenton, who will be based at Pallas’ Adelaide office at 57–69 Wyatt Street, also has worked at Commonwealth Bank of Australia, CBRE and St George Bank in South Australia.
“This is a pivotal period for real estate across the region, and we’re committed to becoming the funding partner of choice for developers and brokers seeking fast and flexible lending solutions,” Fenton said.
Pallas Group Executive Jason Arnold said the South Australian expansion was part of the group’s strategy to build a national private lending platform as it remains on track to double its lending volumes by the end of the 2024/25 financial year. In its first quarter loan book commentary, Pallas said while the investments and purchases in the housing market were still flat, there is pent-up demand. Buyers in particular were waiting for more interest rate relief to make a move.
There have been two rate cuts totalling 0.5% since the start of the year.