Morgan Stanley is investing in Australian commercial real estate loans via a strategy managed by local specialist property lender Pallas Capital.
Morgan Stanley has backed Pallas Funding Trust No 5 (PFT5), a A$500m (€280m) commercial real estate (CRE) loan fund created to provide SME borrowers with a range of loans, including pre-development loans, residual stock loans and investment property loans.
PFT5 will not issue construction loans, but these are available through other Pallas Capital funding vehicles.
Dan Gallen, CIO of Pallas Capital, said: “We are delighted to announce our collaboration with Morgan Stanley. This new facility will continue our targeted approach of providing flexible, well-priced CRE debt product to the less well-serviced mid-market segment.”
Jason Arnold, head of origination at Pallas Capital, said: “This new facility strengthens our ability to offer more choice, more control and faster outcomes for commercial borrowers. It reflects our continued growth trajectory into 2026 and beyond.”
Arnold added that the new vehicle further empowered Pallas Capital’s broker network, which account for most of its deal flow, to deliver highly competitive, tailored finance solutions for their clients. “In a complex lending environment, we’re proud to provide the certainty and flexibility the market needs,” he said.
Last year, Ares Management Corporation backed the Pallas Funding Trust No 2 with a A$450m investment.
To read the latest IPE Real Assets magazine click here.
