Metrics launches Metrics Real Estate Multi-Strategy Fund IPO (ASX:MRE)
A new way to invest in commercial real estate
Today, Metrics Credit Partners (Metrics), a leading Australian asset manager with approximately $20 billion funds under management, launched an initial public offer (IPO) for stapled units in the Metrics Real Estate Multi-Strategy Fund (ASX:MRE). The Fund provides investors with an opportunity to invest via a stapled security structure consisting of the Metrics Real Estate Multi-Strategy Passive Trust (Passive Trust) and Metrics Real Estate Multi-Strategy Active Trust (Active Trust) (Fund).
Both Trusts are registered with ASIC and are proposed to be jointly quoted on the ASX as stapled securities on 16 October 2024. An interest in the Fund consists of one unit in the Active Trust and one unit in the Passive Trust (Unit Set).
Zenith Investment Partners(1) and Lonsec Research(2) have both initiated research coverage and given the Fund a ‘Recommended’ rating.
The Fund provides investors with the opportunity to obtain broad exposure to commercial real estate (CRE) investments. It targets a total return of 10.00%-12.00% p.a. net of all costs through the economic cycle (Total Target Return)(3).
The Fund’s investment objective(4) is to provide investors with exposure to a diversified portfolio of private markets CRE investments covering the entire capital structure from lower risk senior secured first registered mortgage debt through to higher risk and potentially higher returning equity investments and seeks to preserve investor capital, manage investment risks and deliver on the Target Total Return.
The IPO issue price for subscriptions is A$2.00 per Unit Set to raise a target amount of A$300 million with the ability to accept oversubscriptions. The minimum investment is $2,000 and the offer closes at 5:00pm on 25 September 2024.
Metrics Managing Partner, Andrew Lockhart said, “Metrics is pleased to launch the Metrics Real Estate Multi-Strategy Fund. This will be our third listed fund open to investors on the ASX. 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 investments portfolios managed by Metrics.
“Metrics manages funds which invest across all real estate asset classes with investment assets directly originated, negotiated, structured and executed through the extensive proprietary relationships and expertise of the Metrics team. 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 (senior, mezzanine debt, preferred equity and equity).
Mr Lockhart added, “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.”
Metrics has an experienced team of over 150 investment professionals with current CRE debt assets under management of approximately $11 billion.
Further details on the Fund can be found at www.metrics.com.au/mre.
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