The Qualitas Real Estate Income Fund (Trust or QRI) will seek 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 will seek 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.
QRI Manager Pty Ltd (ACN 625 857 070) is the appointed investment manager of QRI (Manager). It is a newly incorporated entity and is wholly owned by the Qualitas Group.
Established in 2008, the Qualitas Group is a real estate investment management firm specialising in commercial real estate, with approximately $2.0 billion4 in Committed Capital. The Qualitas Group is active in Australia’s major capital cities deploying institutional and high net worth investor capital, as well as investing its own balance sheet. The Qualitas Group’s investment philosophy is to seek deep value-based opportunities across the capital structure with a focus on risk mitigation via institutional-grade risk management, governance and operations.
The Qualitas Group capitalises on its strong market knowledge, industry contacts and “on-the-ground” infrastructure spanning origination, execution and active asset and loan management. The Qualitas Group has 70 staff, including 20 investment professionals, with offices in Melbourne and Sydney5.
Investment strategies span senior debt, mezzanine debt, preferred equity and ordinary equity investments in real estate development, value-add, repositioning, special situations and other opportunistic transactions.
The debt investment team is led by Tim Johansen, Managing Director – Real Estate Finance. Tim is supported by 12 investment professionals and forms part of the Qualitas Team which will assist the Manager in performing its obligations in relation to the Trust.
The Qualitas Team have have an average of over 20 years of relevant experience with backgrounds across real estate lending, principal investment, investment banking, construction, development, structured finance, mortgage loan servicing, investment management, finance, risk, investment operations, funds management, compliance and law.
4 As at 30 June 2018.
5 As at 31 July 2018.
THE TRUST KEY MANAGEMENT TEAM
Group Managing Director & Co-Founder
Andrew is the Group Managing Director and a co-founder of the Qualitas Group. Andrew has over 32 years’ experience in financial services with an extensive track record across real estate investment. He is responsible for overseeing the Qualitas Group’s activities, setting the strategic direction of the business, transaction origination as well as building and enhancing relationships with the firm’s clients and investors. Andrew has previously held senior roles within a number of global organisations specifically focused on real estate and corporate finance.
Prior to joining the Qualitas Group, Andrew was the Head of Asia Pacific Real Estate at investment firm Babcock & Brown, a Director of Risk at AIDC (government owned financier) as well as a Senior Manager at Bank of America.
Andrew is a member of the Chartered Accountants Australia and New Zealand and on the Advisory Board of the Property Industry Foundation (Victoria).
Chief Risk Officer
Gerd joined the Qualitas Group in 2010 and is responsible for the management of the firm’s transaction risks. Gerd’s experience spans over 30 years in banking, specialising in credit risk management, project financing, structured lending and financial advisory roles.
Prior to joining Qualitas, Gerd was Director, Lending Services for ANZ Group. Gerd’s prior roles have also included Director positions in Project and Structured Finance for ANZ, Head of Credit with NM Rothschild & Sons (Australia) and Director/Credit Executive, Specialised Finance for National Australia Bank.
Chief Financial Officer & Head of Strategy
Kathleen joined the Qualitas Group in 2014 and is responsible for corporate strategy, finance and operations, including investment operations.
Kathleen has over 18 years’ experience in financial services spanning debt and equity advisory for major infrastructure projects as well as the development and financing of renewable energy and power generation assets for both listed and unlisted funds.
Prior to joining the Qualitas Group, Kathleen has held roles both locally and internationally, with major financial institutions and global advisory firms. These roles were with PricewaterhouseCoopers focused on PPP advisory for major projects, Deutsche Bank in London and KPMG.
Kathleen is a member of the Chartered Accountants Australia and New Zealand.
Managing Director, Real Estate Finance
Tim joined the Qualitas Group in 2011 where he established the firm’s presence in Sydney and leads the Real Estate Finance team which is responsible for the origination and execution of secured real estate loans. Tim has extensive experience across real estate financing markets over 30 years including senior debt, mezzanine debt, equity co-investments and financing advice.
Prior to joining the Qualitas Group, Tim was the Head of Structured Real Estate Finance at Investec Bank for 9 years. Prior to Investec Bank, Tim worked for one of Australia’s largest banks.
Tim is a Fellow of the Royal Institution of Chartered Surveyors.
Head of Institutional Capital & Portfolio Management
Yossi joined the Qualitas Group in 2012 and is responsible for the institutional capital relationships, general investor relations strategy and portfolio management across the firm. Yossi has over 20 years’ experience in global real estate finance, capital markets, real estate structured products and capital raising.
Prior to joining the Qualitas Group, Yossi worked for Royal Bank of Scotland in London where he was the Managing Director and Head of Real Estate Capital Markets and Real Estate Syndications for Europe, Middle East and Asia. Prior to this Yossi had senior roles at both Credit Suisse and BNP Paribas.
|Lodgement of PDS with ASIC||8 October 2018|
|Offer opened||16 October 2018|
|Offer closed||13 November 2018|
|Intended Allotment Date||23 November 2018|
|Dispatch of holding statements||26 November 2018|
|Commencement of trading of Units||27 November 2018|
|Distribution date||On or around the end of each month6|
6 It is currently intended that the first distribution will be paid to Unitholders within the first three months following the listing date.
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.