A Sydney commercial real estate investment manager has acquired a Melbourne firm in a bid for further growth.
Pallas Capital has acquired specialist real estate capital placement and advisory firm Gravitas Group earlier this month.
Pallas Capital chair Patrick Keenan said Gravitas's investor base will be consolidated with Pallas's existing network to deliver increased financing capacity for its clients.
"The firm's extensive experience will prove to be a major asset and provide excellent strategic advice as our platform continues to grow," Keenan said.
Gravitas Group founder and managing director Felicity Fowler said the firm was pleased to merge its distribution capability with Pallas Capital's investment platform.
"We see strong alignment in the depth and breadth of Pallas Capital's investment product and our investor base."
"We're motivated by the opportunity to focus on a product pipeline of c. $1.5bn that offers wholesale investors some of the strongest risk adjusted returns in the CRE capital markets today," Fowler said.
Gravitas has raised over $75 million from wholesale investors for real estate debt and equity products, most of which was placed in CRE debt opportunities.
Pallas currently has $300 million in funds under management and is eyeing $500 million by the end of this year.