It doubles in size to meet demands of growing broker network
Tapping into a strong and growing broker network, specialist commercial real estate financier Pallas Capital has more than doubled the size of its origination team.
The non-bank lender, which has offices in Sydney, Melbourne, Brisbane and Auckland, says the expansion marks a new chapter in the business’s growth and development and is aimed at better supporting brokers with tailored CRE lending options across Australia and New Zealand.
Almost four in five (79%) of Pallas Capital’s CRE loans are originated by brokers.
Pallas Capital group executive – origination Jason Arnold (pictured above) said the origination team had more than doubled in size to 14 members.
“Our team provides specialist credit knowledge and tailored lending solutions, along with local support for our broker partners and aggregator partners,” Arnold said.
“Over the past year, we’ve strategically expanded our team with individuals who each bring a wealth of experience in property finance and commercial banking, to deliver exceptional service.”
Among the key hires are David Wang and Bruno Antonio as associate directors in Melbourne; associate director Davide Bini and associate Lachie Davidson (pictured below left) in Sydney; and in Auckland, associate directors Andrew Priest (pictured below centre) and Martin Shepherd (pictured below right).
Broker network expands
Arnold said strong liquidity, a flexible product mix and origination team expansion had all been important drivers of the non-bank’s increasing number of broker partners.
“At Pallas Capital, expertise is at the core of what we do, and we pride ourselves on our dedication to providing consistent and high-quality service,” Arnold said.
“Forging closer ties with brokers and building long-term relationships based on trust and delivering exceptional results are core components of our growth strategy. Our expanded origination team will play a pivotal role in delivering on our strategy.”
Diversification opportunities
Non-bank lenders are increasingly important providers of CRE debt, with over $14.8 billion of private capital invested in Australia’s commercial market, according to Knight Frank’s The Wealth Report 2024.
Arnold said CRE debt provided the security required for lender confidence, while investors appreciated the flexibility offered by non-bank lending, with projects assessed on an individual basis.
The continued trend of residential brokers diversifying into commercial finance is very important, he said. It gave brokers a wider range of tools and solutions and enabled them to grow and attract a wider range of clientele – while still continuing to service existing clients.
“The growing appetite for CRE debt not only provides a valuable diversification tool for investors but also presents a unique opportunity for brokers to diversify their revenue streams … they can cater the evolving needs of their clients and capture a larger share of the market.”
Arnold said commercial real estate participants were increasingly facing complex financing requirements, including sophisticated structuring, specialised loan products, and tailored financial solutions.
“Brokers with expertise in these areas are in high demand for their skills navigating and arranging these transactions.”
Arnold said that with more brokers taking on this part of the market, the need for ongoing education was growing.
“Our specialist team is perfectly positioned to support brokers with CRE debt expertise and help them to find solutions for complex transactions that others in the market simply can’t cater to.”
Structuring loan deals
Arnold said Pallas Capital collaborated with brokers throughout the entire application and settlement process.
“This may include wrapping in relevant external consultants such as valuers, quantity surveyors and lawyers,” he said. “Or it might be simply meeting with brokers and ensuring a high level of communication throughout the application process – whether in person, via teams, phone and/or email.”
The team also organises individual or group training sessions when and where required, said Arnold. “We’ve found these have been a really effective way of enhancing the commercial skillset of brokers as well as educating brokers about our own products and processes,” he said.
The expansion comes on the heels of the firm hitting the significant milestone of $2bn in funds under management. Earlier this year, Pallas Capital also secured a $450m senior funding facility from Ares Management Corporation, enhancing its capacity for offering larger loans.
