Pallas announces $50 million fund for CRE debt deals

by Mike Wood31 Jan 2022

Pallas Capital has announced a new offering for investors, with the hope that it will soon raise $50 million to fund new lending.

Pallas has specialised in creating funding facilities to help get property deals over the line, with a range of new funds created in the last 12 months that have provided opportunities for investors and options for borrowers.

This latest fund, which is aiming for $50 million by the end of 2022, is designed to offer registered first mortgages to investors under a fixed return of 5.5% per annum.

Read more: Pallas Capital launches short-term fund

“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 first mortgages,” said Mark Spring, director at Pallas Group.

“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.”

In addition to the Short Term Fund that Pallas has set up, it has also secured a $530 million first mortgage warehouse facility from Credit Suisse, which was announced as recently as last November.

The lender plays an important role in the commercial real estate debt sector, offering alternate funding sources where major lenders often struggle to operate.

Pallas has also worked with the rating agencies to have its flagship fund, the Pallas Warehouse Trust No.3, rated by SQM Research. In September, SQM awarded an inaugural superior 4-star rating, giving wealth planners and investors the assurance that their investment is in safe hands and will continue to provide strong risk-adjusted returns.