Set up as lending vehicle by Pallas Capital in November 2021, PFT offers brokers and developers lending solutions tailored to their needs including acquisition, construction, residual stock, along with the flexibility to negotiate LVRs.
The trust was approved for a total funding amount of $530 million by its funding partners Pallas Capital and Credit Suisse.
“PFT was established for medium-sized borrowers who have been underserviced by the major banks and used for a diverse mix of loan types to complete residential projects, future development sites, and investment properties,” Pallas Capital Executive Director of Lending, Steve Lawrence said.
PFT lends money on a range of pre-development loans, residual stock loans, and investment property loans ranging up to $15 million.
“PFT has been seeded with a portfolio of high-quality loans in the three months since Pallas Capital commenced the program,” Lawrence said.
“Our broker and borrower clients see Pallas as an attractive alternative to the banks, given PFT’s competitive interest rates, flexible leverage options and market-leading service proposition.”
Pallas Capital started marketing its PFT products prior to the commencement of the fund and its origination team met with several brokers to go through the products in detail to assist their borrowers.
“This, along with the confidence our brokers have with our delivery, has proved very successful, which is shown by the growth of the fund in such a short time,” claimed Lawrence.
All loans placed in the PFT were from brokers, which was a testament to the strength of the brokers and the strong relationships they had built with the Pallas team over a number of years.
Lawrence said Pallas Capital predicted a record year ahead for lending volumes.
“We are forecasting that during the next quarter we will place a further $150 million of loans into the fund to bring the total amount of loans to in excess of $250 million,” he said.
Pallas Capital expected demand to accelerate through its strong broker and borrower relationships and through other products it offers including the Pallas High Yield Fund, which was designed to make second mortgage loans for clients.
The company was also in discussions with a number of aggregation groups to expand its broker base and was happy to discuss the accreditation process with new brokers directly via email.