Leading Australian specialist property lender Pallas Capital has established a new diversified, open-ended fund called Pallas Short Term Fund.
The Pallas Short Term Fund offers a minimum investment term of six months, and thereafter investors elect either to withdraw their monies or reinvest at each quarterly redemption window. The fund is supported by first mortgage loans and offers investors a 5.5% p.a. yield payable monthly in arrears.
The Pallas Short Term Fund is a mortgage loan warehouse facility. It will be invested only in registered first mortgages secured over premium real estate assets in Sydney, Melbourne and Brisbane with each loan having a maximum LVR of 65%.
The Pallas Short Term Fund will look to raise $50 million initially, with the capacity to increase the fund size as required. Pallas Capital is anticipating strong interest from its established investor network for this new offering.
Mark Spring, Director of Pallas Group, commented that, “Our high-net-worth investors, family offices, wealth advisers and institutional investors have been looking for a fund offering a shorter-term investment commitment but still backed by registered property mortgages. Although this will require very active management by us, to match fund assets against a relatively short investment commitment, Pallas Capital now has a loan book of sufficient size and differentiation to make this possible.”
Mr. Spring further noted that it is the wide range of investment offerings by Pallas Capital that have enabled it to grow total funds under management by over 75% per annum.
Pallas Capital is one of the fastest growing structured property investment arrangers in Australia, offering wholesale and sophisticated investors investment opportunities backed by commercial real estate providing fixed rate returns ranging from 5.5% p.a. in the Pallas Short Term Fund to 6.75% p.a. (first mortgages) and to 15% p.a. (preference equity).
The business manages funds for loans secured against non-specialised property assets – chiefly premium, city-fringe assets with values between $2 – $50 million in Sydney, Brisbane and Melbourne. Its loans are supported by detailed due diligence on the borrower, a realistic and multi-faceted exit strategy, and active management of all loans by the Pallas Capital team throughout the term.
Pallas Capital and developer Fortis form part of Pallas Group, a business that provides specialist investment, lending and development solutions in the boutique property market in Australia.
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