Pallas ‘First Mortgage’ Warehouse Trust.

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Up to $20 million in Senior Secured Notes will be issued by a special purpose vehicle known as the ‘Pallas Warehouse Trust’ (PWT).  Money raised will then be used to invest in short term loans secured by registered First Mortgages over Australian property only, with loan terms between 6 – 18 months and a portfolio LVR of 65% or less.

Quarterly coupon interest payments are guaranteed by Pallas Capital and the PWT will also hold a Bank guarantee to cover the first $500,000 of any loss that may be incurred on any loan that the PWT participates in.  This additional security lowers the effective LVR across the portfolio to 54% or less and is in place for the Trustee to call upon should any capital loss be incurred before there is any impact on the Senior Secured note holders. 

We believe this offering will suit sophisticated investors looking for excellent risk weighted exposure to First Mortgage real estate debt given the added security protection of the ‘First Loss’ Bank guarantee and guaranteed quarterly coupon payments throughout the term of the investment.