Qualitas raises over $230m, closes real estate debt fund IPO
15 November 2018
Media Release, Thursday 15 November, 2018: The Qualitas Real Estate Income Fund (QRI) raised more than $230 million, with the general offer closing at 5.00pm (AEDT) on Tuesday. The trust aims to provide investors with a target return of 8.0% p.a. (net of fees) with cash distributions paid monthly* , which is generated by commercial real estate loans.
The Qualitas Real Estate Income Fund offer received strong support from cornerstone investors and, in particular, the wealth advisory network. Qualitas said investors have been attracted to the proposed income and portfolio diversification benefits.
Qualitas’ Group Managing Director, Andrew Schwartz, said, “The feedback from investors is that they are looking to generate income beyond traditional, dividend-focused equities or lower-yielding bonds and term deposits. QRI was established with the aim of providing diversification through exposure via an alternative asset class, being the commercial real estate finance market.”
The trust will invest in a portfolio of loans, secured by predominantly first, and on occasion second, real property mortgages as the primary source of security.
“QRI aims to provide predictable income with a focus on capital preservation, which is especially sought-after by investors such as self-funded retirees, and explains the strong interest we received. We are pleased to have raised above $230m – well ahead of the minimum we were seeking – even in the face of recent market volatility,” Mr Schwartz said.
Funds that invest only in commercial real estate loans are an established listed investment product on stock exchanges internationally, but not available in Australia until now.
“The trust offers exposure to the commercial real estate finance market in a listed format, which has been largely inaccessible to direct and SMSF investors to date. While markets overseas are familiar with this type of product, it is quite a differentiated offering on the ASX,” Mr Schwartz said.
Scott Favaloro, Senior Corporate Adviser for Evans Dixon, the lead arranger and manager of the offer, said a diverse group of advisors and clients had been very responsive to the investment opportunity.
“This transaction stands out in the busy listed investment entity market because it offers differentiation, in terms of target return and asset class. We’ve been very pleased by the response from investors and their advisers who see the role QRI can play in diversifying client portfolios and adding additional income.”
The general offer closed at 5.00pm (AEDT) on 13 November 2018 and the trust is expected to be listed on the ASX on 27 November 2018.
Director, External Affairs, Qualitas
PH: 0421 193 668
Qualitas is one of Australia’s leading real estate investment management firms specialising in real estate equity and debt investing. Established in 2008, the firm has invested in or financed assets valued at over $7.0 billion since inception.
The firm invests across the capital structure in senior debt, mezzanine debt, preferred equity, and equity with a focus on development, value add, opportunistic and structured investments.
Qualitas manages discretionary funds on behalf of institutional and wholesale clients in Australia, Asia, and Europe.
The Responsible Entity for the trust is The Trust Company (RE Services) Limited (Perpetual) a part of the Perpetual group of companies. Perpetual is a financial services group operating in funds management, financial advisory and trustee services. Our origin as a trustee company, coupled with our strong track record of investment performance, has created our reputation as one of the strongest brands in financial services in Australia. For further information, go to www.perpetual.com.au
*This is a targeted return only. There is no guarantee that the Trust will achieve its Investment Objective. The payment of monthly cash income is a goal of the Trust only.
Qualitas Real Estate Income Fund ARSN 627 917 971 (Trust). Issued by the Trust Company (RE Services) Limited (ACN 003 278 831). Prepared by QRI Manager Pty Ltd ACN 625 857 070 the Trust investment manager and authorised representative of Qualitas Securities Pty Ltd AFSL 342242.
This document is of a general nature only, prepared without considering your objectives, financial situation or needs, and before making an investment decision seek appropriate advice and consider the Trust PDS dated 8 October 2018.