As part of the role, Jason will be instrumental in driving operational improvement and growth in FUM of Pallas Capital’s growing suite of CRE debt products across Australia and New Zealand.

Prior to joining the Pallas Capital team, Jason spent 22 years in the real estate and structured finance sector, most recently as Owner and Managing Director of Quattro Finance & Advisory where he has originated approximately $2 billion in mortgages.

​“When the opportunity was presented to not only be a part of the growth of Pallas Capital, but to truly challenge the industry as a leader in the commercial real estate finance sector, it was an offer too good to pass on. The professionalism, experience and drive shown by the team, combined with the true care shown for all stakeholders in and around the business made this an easy decision for me” says Arnold.

​He adds, “I have known and worked with both Dan Gallen and Alexis Holloway for more than a decade and have worked closely with the broader Pallas Capital team on behalf of my own clients for the past three years. These relationships have enabled me to closely observe the capabilities and experience of the team in the commercial property and development finance market”.

​“We are excited to have Jason join the Pallas Capital team after working closely with him over the past decade and experiencing his talent and professionalism first-hand. It can be difficult to find senior personnel that align with the skill-set, culture and expertise that a company such as Pallas Capital requires as it continues to grow, and we are confident that Jason’s wealth of experience and personal drive will see an immediate impact on our business,” says Dan Gallen, Executive Director and Chief Investment Officer, Pallas Capital.

​Pallas Capital is one of the fastest growing non-bank lenders in Australia, offering brokers and developers lending solutions that are tailored to their needs. It offers borrowers five core loan types, being acquisition, pre-development, construction, residual stock and vacant land loans, along with the flexibility to negotiate LVRs and the required level of pre-sales for construction loans.

Pallas Capital manages funds for investing in commercial real estate loans secured against property assets with values between $1 – $50 million in major metropolitan areas. Wholesale investors are offered investment opportunities providing fixed or variable rate returns ranging from 7.7% p.a. in the Pallas Short Term Fund to 9% to 10% p.a. both rates inclusive of BBSW (first mortgages), 12.6% p.a. for the High Yield Fund inclusive of BBSW (First and Second Mortgages) and up to 18% p.a. for preference equity investments. Pallas Capital’s loans are supported by robust due diligence on each borrower and the security property, a realistic and multi-faceted exit strategy, and active management of all loans by the Pallas Capital team throughout the term.

​Pallas Capital and developer Fortis comprise Pallas Group, a business that provides specialist investment, lending and development solutions in the boutique property market in Australia.

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Dan Gallen

Leading Australian specialist property lender Pallas Capital has established a new lending vehicle with Credit Suisse, called Pallas NZ Funding Trust No. 1 (PFT NZ). PFT NZ is Pallas Capital’s first lending vehicle in New Zealand’s commercial real estate (CRE) debt market.

​PFT NZ has total funding of NZ$360 million approved by its funding partners, including Credit Suisse. Since its launch a few days ago, PFT NZ has funded six loans with a total value of NZ$29 million.

​PFT NZ intends to lend this money on a range of pre-development loans, residual stock loans and investment property loans. It expects that most of its loans will be between NZ$2 – 10 million in total, although it is able to make larger loans where its credit criteria are met. It will target medium sized CRE loan types and borrowers that lack liquidity as lending by both the banks and existing non-bank lenders tightens.

​PFT NZ is modelled on the successful Pallas Funding Trust No. 1 (PFT No. 1) launched in November 2021. PFT No. 1 is managed by Pallas Capital and majority funded by Credit Suisse and lends to medium sized SMEs in Australia.

​PFT No. 1 is the fastest growing fund managed by Pallas Capital, having now made a total of 72 loans with a total value of AU$320 million.

Dan Gallen, the Chief Investment Officer of Pallas Capital, commented that, “We are very excited to take our successful lending model into New Zealand, supported again by Credit Suisse. The CRE loans offered by our PFT vehicles provide crucial support to our SME borrowers at a time when loans from traditional banks, and other non-bank lenders, are harder to obtain and carry more onerous loan terms.”

He adds, “The market segment serviced by the PFT vehicles in Australia and New Zealand, whilst underserviced at present, generates substantial lending volumes given that most commercial properties have a value range of AU$1 – AU$15 million. This is precisely where PFT No. 1 and PFT NZ focus their lending businesses. We are confident that PFT NZ will emulate the success of PFT No. 1 as the lending team in our new Auckland office have long experience and deep relationships in the New Zealand CRE loan market.”

Mr. Gallen noted that, although other non-bank lenders compete with PFT, many of these lenders are funded by retail or high net worth investors. These investment flows have contracted quickly as market sentiment has softened in recent months, as it did in the first COVID 19 lockdown.

​Will Farrant, the head of Securitised Products for APAC at Credit Suisse, commented, “When it was launched last year PFT No 1 represented a new asset class for Credit Suisse in Australia. We looked for ways to expand how we can support Pallas Capital from the outset, and so are very pleased to now offer the same funding structure in New Zealand. We are confident of Pallas Capital’s future success and will continue to seek ways to do more with them going forward.”

​Although PFT will not undertake construction loans, these will continue to be offered through the existing Pallas Capital lending business that is currently settling about AU$50 million per month of new construction loans.

​Since its inception in December 2016, Pallas Capital has settled 331 loans and other funding structures with a total value exceeding AU$2.4 billion. With 150 loans having been repaid, it has a current loan book of AU$1.5 billion across 185 transactions.

​Pallas Capital and developer Fortis comprise Pallas Group, a business that provides specialist investment, lending and development solutions in the boutique property market in Australia.
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​Credit Suisse is an established warehouse provider and capital markets intermediary around the world. It has a track record of providing warehouse funding to loan originators servicing illiquid and under-serviced sectors of the Australian economy and developing capital markets funding for those asset types.

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Steve will lead Pallas Capital’s growing lending team as the business continues its trajectory of rapid growth, bringing its expanding portfolio of flexible lending products to brokers and borrowers around Australia.

Since its inception five years ago, Pallas Capital has enjoyed rapid growth – having underwritten over A$750 million of transactions to date. With Steve’s appointment, this number will climb sharply over the next 6-12 months.

Steve joins Pallas Capital from La Trobe Financial where he most recently served as Chief Lending Officer Commercial. Steve said that his focus at Pallas Capital will be to expand the loan book at a rapid rate, bringing high-quality service, great speed-to-market, and flexibility in assessing and delivering loans to the growing client base.

“I have been in the banking, finance and property industries in Australia for almost 40 years, and I know that relationships are at the heart of success in this business, and therefore in everything that I do.”

“Patrick Keenan and Dan Gallen have a very compelling, ambitious and well-supported vision for Pallas Capital’s business, and it was an easy decision for me to become part of the team working to achieve this vision.”

“I look forward to continuing to build on my strong relationships in the Australian lending industry to drive positive outcomes for brokers and borrowers looking to take advantage of one of the most competitive real-estate loan product ranges in the Australian market, supported by Pallas Capital’s robust lending strategy,” Mr. Lawrence said.

Dan Gallen, Chief Investment Officer of the Pallas Group, said Steve’s appointment enables Pallas Capital to expand its support of the thriving property sector in Australia.

“Steve brings deep experience, trust and industry-leading relationships to Pallas Capital’s business, and we are thrilled to have him onboard. We knew that we needed the right person to lead Pallas Capital’s lending team, and Steve’s reputation in the industry was one we could not look past.”

“At Pallas Capital, we are committed to assisting those who are under-served in the current market. The construction market in Sydney, Brisbane and Melbourne continues to grow at a fast rate, and Pallas Capital will continue to support the booming property sector in Australia through our diversified funding strategy. The certainty our lending clients have in our service and product is what drives our customer loyalty and steadily growing loan book, and I know that with Steve at the helm, the quality of our client relationships will only continue to grow,” Mr. Gallen said.

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