Palladius Capital Management is planning to expand its US real estate debt platform with $300m (€291m) worth of investments.

The real estate investment manager said it is targeting construction and transitional commercial real estate debt investments, which it plans to hold on its balance sheet. 

Specifically, the firm is focused on “originating, acquiring and managing first mortgages, B-notes, mezzanine debt and preferred equity”.

Palladius said it is seeking borrowers with plans which require flexible financing solutions – ranging in size from $2m to $40m – across most asset classes including multifamily, student housing, industrial, hospitality and single-family housing.

The decision to expand its debt platform advances the firm’s “broader plan to introduce new investment strategies when market conditions are highly conducive to success”, the company said.

Nitin Chexal, CEO of Palladius Capital Management, said: “Ramping up our lending platform alongside our equity activities comes at a time when many bank and non-bank lenders are pausing activities due to rising interest rates and prolonged economic uncertainty.

“This strategic decision adds to the firm’s overall capabilities, aligns with our tactically contrarian investment philosophy and demonstrates our ability to add capital solutions based on where we believe we can achieve attractive risk-adjusted returns.”

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