11 October 2019 – The Investment Manager (Manager) of the Qualitas Real Estate Income Fund (Trust or QRI) announces that its 1-for-1 Accelerated Non-Renounceable Entitlement Offer (Entitlement Offer) has now closed raising approximately $94.7m in total. This amount includes the proceeds of the Wholesale and Early Retail Entitlement Offers (approx. $40.1m – settled on 26 September 2019); the Retail Entitlement Offer (approx. $19.4m); and Shortfall Offer (approx. $35.2m), which will both settle on 17 October 2019[1].

Andrew Schwartz, Group Managing Director, Qualitas, said, “Qualitas is pleased with the result of this capital raising, and the ongoing level of support we have received since we launched the Trust.

“Less than a year ago, Qualitas launched a new investment product to the domestic listed market. Since that time, we have grown the Trust size by around 50% of its capital base since the IPO, demonstrating that there is genuine, sustained demand for a listed fund specialising in commercial real estate (CRE) debt and paying monthly cash distributions[2] with a focus on capital preservation.”

As announced on 1 October 2019, the Trust invested $39m of the proceeds raised from the Wholesale and Early Retail Offers in the Qualitas Senior Debt Fund.

“The remaining new capital is expected to be invested into a number of CRE loans which are at various stages of assessment by the Manager. QRI will also benefit from increased liquidity and an expanded unitholder base as a result of the capital raise.

“The Trust is currently fully deployed[3], so this new capital will allow us to meet strong market demand for CRE loans, as evidenced by our robust debt pipeline as we previously updated the market on, while diversifying the loan portfolio and minimising the level of uninvested cash. We are focused on investing the new capital in an efficient and timely manner in order to maximise returns to unitholders.

“We thank all existing unitholders who participated in the Offer and welcome new investors to our register,” Mr Schwartz said.

 

[1] The funds raised and units to be issued under the Retail Entitlement Offer and Shortfall Offer are subject to settlement on 17 October 2019.

[2] There is no guarantee the Trust will pay monthly cash distributions or meet its Investment Objective. The payment of monthly cash distributions is a goal of the Trust only.

[3] Allowing for a 2% buffer held as cash to provide an appropriate level of liquidity to the fund.

Notices and disclaimers

This communication has been issued by The Trust Company (RE Services) Limited (ACN 003 278  831)  (AFSL 235150) responsible entity of The Qualitas Real Estate Income Fund (ARSN 627 917 971) (Trust) and has been prepared by QRI Manager Pty Ltd (ACN 625 857 070) (AFS Representative 1266996 as authorised representative of Qualitas Securities Pty Ltd (ACN 136 451 128) (AFSL 34224)) as the Investment Manager for the Trust..

This communication contains general information only and does not take into account your investment objectives, financial situation or needs. It does not constitute financial, tax or legal advice, nor is it an offer, invitation or recommendation to subscribe or purchase a unit in QRI or any other financial product. Before acting on any information contained in this communication, you should consider whether it’s appropriate to you, in light of your objectives, financial situation or needs.

While every effort has been made to ensure the information in this communication is accurate; its accuracy, reliability or completeness is not guaranteed and none of The Trust Company (RE Services) Limited (ACN 003 278 831), QRI Manager Pty Ltd (ACN 625 857 070), Qualitas Securities Pty Ltd (ACN 136 451 128) or any of their related entities or their respective directors or officers are liable to you in respect of this communication. Past performance is not a reliable indicator of future performance.