The non-bank lender, which focuses on first mortgage debt and typically provides loans of between $5 million and $30 million, benefited during the first few months of the COVID-19 crisis when its fixed repayments from residual stock loans, site acquisition or development finance grew more attractive to investors watching their other investments fall in value.
“In the teeth of COVID, investors went quiet,” Pallas Capital executive director Dan Gallen said. “What we found, as investors started to understand the world wasn’t going to end … they piled into the sector.”
The pandemic has slowed growth of Pallas Capital, which in February said it aimed to secure $500 million of funds under management this year. Mr Gallen said he hoped to reach that total by the end of this year or early next year.
In February, the Sydney-based lender acquired specialist capital placement advisory firm Gravitas Group to boost its presence in Melbourne and accelerate the growth of its funds under management.
Pallas-funded projects include Beams Projects‘ $17 million, six-storey boutique office development at Wangaratta Street in inner-Melbourne’s Richmond and sister company Fortis’ $33 million nine-apartment Marmont development on New South Head Road in Sydney’s Double Bay.