Backed by Pallas and Credit Suisse, the Pallas Funding Trust lends between $1 million and $10 million to medium-sized commercial real estate borrowers.
The trust currently has $530 million worth of funding approved by its backers.
It competes with non-bank lenders and does not offer construction loans. The latter is offered by Pallas’ lending business, which settles about $50 million per month in new construction loans.
Pallas chief investment officer Dan Gallen said this under-serviced commercial real estate market segment has substantial lending volumes given that most commercial properties have a value in the range of $1 million to $15 million.
“PFT has been designed to focus its lending business in this borrower segment. In addition, the loan types that PFT funds, such as value-add investment loans, residual stock and pre-development loans are the loan types the banks have limited appetite to fund,” he said.
“With Credit Suisse as a funding partner, PFT is protected from such pressures on liquidity and is well placed to continue lending through cycles that would sideline many of its competitors.”
Pallas raised $194 million in new commitments from high-net-worth and family office investors between June and August.
Since it launched five years ago, its funding structure has reached over $1.2 billion.
Read article on Financial Standard
We look forward to taking these loan opportunities to our broker clients. To see how Pallas Capital can assist your customers please contact us at lending@pallascapital.com.au