Real estate investment manager, Qualitas, has launched its new listed investment trust (LIT), the Qualitas Real Estate Income Fund (QRI), which will aim to return eight per cent per annum, net of fees and expenses.
QRI was designed to pay cash distributions on a monthly basis, which would be generated by commercial real estate loans, with the offer already managing to attract in excess of the $150 million minimum offer size, the firm said.
According to Qualitas’ group managing director, Andrew Schwartz, the trust would provide investors with an exposure to the commercial real estate finance market in a listed format.
“This is a significant addition to the listed investment landscape in Australia and will provide an opportunity for investors to diversify their portfolios with exposure to real estate loans secured by first or second mortgages,” he said.
Schwartz said the trust was being launched at a time when demand for non-bank real estate financing was growing as banks were withdrawing from the commercial real estate (CRE) debt market, leaving new opportunities for private debt for groups like Qualitas.
“We are really growing our presence in the market to fill the void created by the banks reducing its market share,” he said.
Qualitas, which would be the trust’s investment manager, specialises in all aspects of origination, structuring, negotiation and execution of real estate loans.
There are three main types of loans into which the new LIT would be investing and this would include investment, construction and land loans.
Schwartz described the firm’s due diligence process to the loans as highly selective.
“Once they are funded, we take an active approach to identifying and managing any emerging issues over the life of the loan. This approach has been key to our solid track record over the past decade, and we will apply it to all the investments in the Qualitas Real Estate Income Fund,” he said.
Qualitas appointed Perpetual Corporate Trust as the responsible entity (RE) and custodian for the trust.
