Pallas Capital announces cut in commercial rates

Specialist commercial real estate (CRE) lender Pallas Capital (Pallas) has announced a range of rate cuts from 0.50 per cent to 0.70 per cent to its commercial rates.

According to the lender, this move has placed it among the most competitive non-bank lenders in the market today while “furthering its commitment to providing bespoke financial solutions tailored to the specific needs of brokers and their clients”.

Pallas Capital’s new rates now include rate reductions in residual stock (from 9.95 per cent to 9.25 per cent p.a.), investment (9.95 per cent to 9.25 per cent), pre-development (10.45 per cent to 9.95 per cent), land (10.95 per cent to 10.25 per cent), and residual land lots (10.45 per cent to 9.95 per cent).

This comes as Pallas partnered with Ares to establish a $450 million facility dedicated to CRE borrowers and secured new funding lines from Westpac NZ to support a NZ$360 million facility.

Chief investment officer of Pallas Capital, Dan Gallen, said on the rate reductions: “This rate reduction underscores our commitment to providing competitive and flexible financial solutions.

“Our continued growth, supported by robust institutional partnerships, enables us to deliver rates that reflect the evolving market landscape, benefiting brokers and their clients alike.”

Jason Arnold, group executive of origination at Pallas Capital, further said: “We pride ourselves on offering bespoke loan structures that are tailored to each client’s unique objectives.

“These rate cuts further ensure that we provide not only exceptional value but also the personalised service that Pallas Capital is known for.”

Pallas Capital has confirmed that these rate reductions have taken effect immediately.

Other moves in the CRE space

Along with Pallas Capital, major bank NAB has made another announcement concerning the CRE lending sphere as property development group Salta became the first organisation to take part in NAB’s Green Finance for CRE loan.

Salta secured the loan for a commercial building and retail project called Industry Lanes in Richmond, Victoria. The mixed-use office building qualified for the loan due to its low emissions.

According to Cathryn Carver, NAB’s group executive for corporate and institutional banking, demand for energy-efficient commercial properties is on the rise.

“The technologies needed to enable decarbonisation (in the CRE sector) are available today. Australia’s commercial real estate market is primed and ready to transition,” said Carver.

[RELATED: NAB announces first commercial ‘green finance’ investment]

Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

E-mail Adrian at: This email address is being protected from spambots. You need JavaScript enabled to view it.