The Qualitas Real Estate Income Fund (Trust or QRI) seeks to provide monthly income and capital preservation1 by investing in a portfolio of investments that offers exposure to real estate loans secured by first and second mortgages, predominantly located in Australia.
The Trust’s Investment Objective is:
- A Target Return of 8.0% per annum (net of fees and expenses)1
- Monthly cash income, capital preservation and portfolio diversification.1
The Trust seeks to achieve this objective by investing in a portfolio of investments that provide Unitholders with exposure to Australian and New Zealand secured real estate loans.
The Manager intends to implement active strategies designed to balance investor requirements to deliver the Target Return while actively managing risk via the Qualitas Group’s existing robust risk management approach.
1 This is a target return only. There is no guarantee the Trust will meet its Investment Objective. The payment of monthly cash income is a goal of the Trust only.
Monthly cash income
- Target Return 8.0% per annum (net of fees and expenses) with cash distributions monthly2.
Exposure to a stable and defensive asset class
- Debt sits in a more secure part of the real estate capital structure than equity.
- Debt investors have a preferential treatment over equity investors for income distributions and return of capital.
Diversify into the commercial real estate finance asset class
- Exposure to real estate loan opportunities secured by first and second mortgages available within the commercial real estate finance market, predominantly in Australia.
- Focused on senior, and to a lesser extent mezzanine loans, secured by first or second ranking real property mortgages, respectively.
- Diversified by geographic exposure to Australia and New Zealand3 (the latter is capped at 20% in line with the fund governing documents), investment type, counterparty and real estate sector.
Access high-performing Qualitas Group backed by a strong track record
- 10-year track record of strong returns and management of institutional and wholesale investor capital, both internationally and domestically.
- The Qualitas Team has extensive experience encompassing all aspects of origination, structuring, negotiation and execution of real estate loans as well as managing portfolio risks.
Strong investor alignment
- Qualitas Group will invest $10 million alongside Unitholders for a minimum of five years.
Institutional-grade risk management and corporate governance
- The Qualitas Group has a high-calibre, majority non-executive Advisory Board.
- The Qualitas Advisory Board and dedicated internal committees maintain oversight of finance, operations, internal governance and investment policies.
- A highly selective investment filtering and due diligence process is applied, involving the Qualitas Group’s Portfolio Allocation Committee and active asset management throughout the life of the investment involving the Qualitas Group’s Portfolio Allocation Committee.
2 This is a targeted return only. There is no guarantee the Trust will meet its Investment Objective. The payment of monthly cash income is a goal of the Trust only.
3 Investment allocation as detailed in the Trust documents. Please refer to the Trust’s PDS for additional details.
The Manager will seek to invest the Trust’s capital in a portfolio of investments that provide Unitholders with exposure to predominantly Australian secured real estate loans in line with the Trust’s PDS. The Trust may also invest in secured real estate loans in New Zealand3 from time to time to provide further diversification.
The Trust’s Investment Strategy uses four key Investment Principles to assess investment opportunities:
- Quantum of returns: The Manager will seek to forecast returns from an investment and the components that form those returns – i.e. payment or capitalisation of interest and fees, early repayment and other fees based on contractual agreements.
- Timing of returns: The Manager will seek to forecast, with a reasonable degree of certainty, when the investment is originated, the timing of interest payments and the expected loan repayment(s). This will be predicated by way of contractual arrangements and investment monitoring.
- Assessment of known risks: The Manager will diligently assess each material risk that may influence an investment and seek to actively mitigate all identified risks.
- Ability to exert influence over known risk: Having considered and analysed an investment’s known risks, the Manager will then seek to invest in a secured real estate loan that is structured such that these risks are reasonably mitigated, thereby exerting a degree of influence.
This website is issued by The Trust Company (RE Services) Limited ABN 45 003 278 831 AFSL 235 150 (Perpetual) as responsible entity of the Qualitas Real Estate Income Fund ARSN 627 917 971 (Trust). This website is prepared by QRI Manager Pty Ltd ACN 625 857 070 (Manager) as the investment manager of the Trust. QRI is a wholly owned member of the Qualitas Group and is an authorised representative of the Qualitas Securities Pty Ltd AFSL 342 242.
The information provided in this website is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Units in the Trust will be issued pursuant to a Product Disclosure Statement (PDS) dated 8 October 2018. Before making an investment decision, you should consider the current PDS of the Trust and assess whether the Trust is appropriate given your objectives, financial situation or needs. If you require advice that takes into account your personal circumstances, you should consult a licensed or authorised financial adviser.
Neither Perpetual nor the Manager guarantee repayment of capital or any particular rate of return from the Trust. Neither Perpetual nor the Manager gives any representation or warranty as to the reliability, completeness or accuracy of the information contained in this website. All opinions and estimates included in this website constitute judgments of the Manager as at the date of this website and are subject to change without notice. Past performance is not a reliable indicator of future performance.