Metrics Credit Partners has commenced an initial public offering (IPO) for stapled units in its Metrics Real Estate Multi-Strategy Fund (MRE).
The fund – which Metrics is hoping to have trading on the ASX by mid-October – is aiming to raise a target amount of $300 million by 25 September.
According to the firm, MRE’s objective is to provide investors with exposure to a diversified portfolio of private markets commercial real estate (CRE) investments covering the entire capital structure.
It also seeks to preserve investor capital, manage investment risks and deliver on the target total return of 10 per cent to 12 per cent per annum.
“This will be our third listed fund open to investors on the ASX,” Metrics managing partner Andrew Lockhart said on Tuesday.
“The fund offers the opportunity to obtain broad exposure to both private CRE debt and private CRE equity investments which are not typically available to investors.”
“The fund offers immediate deployment of the funds raised from the offer in existing investment portfolios managed by Metrics,” Lockhart said.
Moreover, its stapled structure consists of the Metrics Real Estate Multi-Strategy Passive Trust (Passive Trust) and Metrics Real Estate Multi-Strategy Active Trust (Active Trust) (Fund), which are proposed to be jointly quoted on the ASX as stapled securities.
“The Metrics Real Estate Multi-Strategy Fund offers investors the potential to earn income from CRE debt investments and potential income and equity upside from CRE co-investment assets, which are not typically available to them,” Lockhart said.
“As one of the largest private credit investors in the Australian real estate sector, Metrics leverages its market position to originate high-quality investment opportunities covering all parts of the capital structure.”
In a recent market outlook, Metrics explained that most people might perceive commercial property investment as simply “holding a stake in bricks and mortar”.
“However, the fast-growing real estate debt market offers a different means to generate returns,” the firm said.
“Although the Australian market in real estate debt is sizeable, avenues for retail investors to build an exposure to it has been limited. This is because major banks have historically dominated lending to the sector, with other lenders accounting for a much smaller proportion of activity.”
“However, recent regulatory pressure aimed at tempering banks’ relative growth to property has facilitated the opportunity for real estate investment funds, including those open to retail clients.”
