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Non-bank commercial lender Pallas Capital has named Jason Arnold as its new group executive for origination, as it seeks to “challenge the industry” in the commercial real estate finance sector.
Pallas Capital offers a number of specialist loan offerings for commercial developers, for purposes including acquisition, pre-development, construction, residual stock and vacant land loans.
Arnold (pictured above) has been charged with driving operational improvements and growth in funds under management of its products across Australia and New Zealand, including through brokers.
“I’ve come from a background where I know the importance of strong relationships between lenders and brokers, and I’m a big believer in long-term relationships built on results and trust,” said Arnold.
“We will continue to grow in the broker space. We will work with aggregators, grow our base of brokers and provide bespoke solutions for their clients in a timely manner.”
Commercial finance an opportunity for brokers
There is an opportunity for non-banks like Pallas at a time when banks are tightening policies and brokers want a service proposition to achieve successful client outcomes, Arnold said.
He also said there was a big opportunity for the broker channel to capture more of the commercial finance market, and that they could do that with the support of non-bank lenders.
“Brokers account for about 30% to 35% of the commercial market, as opposed to 70% in the home loan space – I see that as an unbelievable opportunity for lenders like Pallas to help educate and provide commercial solutions to the marketplace and brokers’ clientele,” Arnold said.
The commercial market overall is in quite good shape amid rising rates, according to Arnold, although there are some pockets of the market experiencing more volatility than others.
He said most astute commercial players have had time to plan and prepare for the current market conditions, so they were in a position to do projects and take advantage of opportunities.
“Most borrowers have planned for this and using the right consultants and lenders they have been able to protect themselves and can now take advantage of opportunities as they arise,” he said.
Pallas Capital loans funded by wholesale investors
Arnold joins Pallas Capital from Quattro Finance & Advisory, where he was responsible for originating approximately $2 billion in mortgages as its owner and managing director.
He has spent a total of 22 years in the real estate and structured finance sector.
“When the opportunity was presented to be a part of the growth of Pallas Capital and challenge the industry as a leader in the commercial real estate finance sector, it was an offer too good to pass on,” he said.
Pallas Capital manages funds for investing in commercial real estate loans secured against property assets with values between $1 million and $50 million in major metropolitan areas. Wholesale investors are offered investment opportunities providing fixed or variable rate returns.
Pallas’ process involves robust due diligence on each borrower and the security property, a realistic and multi-faceted exit strategy, and active management of all loans by its team throughout the term. Pallas Capital is part of Pallas Group, which also includes developer Fortis.
Do you think there’s a big opportunity for brokers to expand into commercial finance? Share your thoughts in the comments section below.
