Morgan Stanley has plans to invest in Australia’s mid-market commercial real estate sector by backing a new A$500 million ($323 million) lending facility, Pallas Funding Trust No. 5 (PFT5), led by non-bank lender Pallas Capital, reported Financial Review. The fund will issue loans ranging from A$15 million to A$35 million ($10 million to $23 million) for pre-development, residual stock, and investment property projects.
Morgan Stanley is the majority funding partner, with additional capital from Pallas Capital’s family office and high-net-worth investors. This move follows Pallas Capital’s completion of nearly A$3 billion ($2 billion) in transactions in fiscal year 2025, including a A$25 million ($16 million) loan in South Yarra and a A$45 million ($29 million) construction loan in Sydney.
