Podcast: Exploring the growth appeal of real estate debt
In this episode of Relative Return, host Laura Dew is joined by Andrew Lockhart, managing partner at Metrics Credit Partners,…
METRICS REAL ESTATE INCOME FUND
An alternative way to invest in real estate.
OVERVIEW
The Metrics Real Estate Income Fund (the Fund) offers investors a pathway into Australia’s diverse commercial real estate (CRE) loan market.
The investment objective of the Fund, through its exposure to the MCP Real Estate Debt Fund (Master Trust) via its investment in the Metrics CRE Multi-Strategy (Debt) Trust (Sub-Trust) – both wholesale vehicles managed by Metrics – is to actively invest in and manage a diversified portfolio of Australian CRE debt assets providing investors with superior risk-adjusted returns.1
The Fund’s investment strategy is to create exposure to a portfolio of Australian CRE loans diversified by projects, borrowers, sectors, geography, stage of development and position in the capital structure.
TARGET RETURN
The Fund’s target return is the RBA cash rate plus 4.00% p.a. net of fees (currently 8.10% p.a.)1 through the economic cycle.
1 The Fund may not be successful in reaching its investment objective.
2 The target return is a target only and may not be achieved. The actual return of the Fund may be lower than the target return.
Fund Features
Metrics Real Estate Income Fund may be suitable for investors looking for an investment that seeks to provide:
Monthly cash income3
Diversified portfolio of more than 100 CRE loans4
Proven track record of the Master Trust5
A large investment management team with extensive expertise
3 Income payments depend on the success of underlying investments and are at the Responsible Entity’s discretion.
4 As at 28 February 2025 the Master Trust held in excess of 100 loans. The number of loans the Master Trust holds may vary over time.
5 Past performance is not a reliable indicator of future performance.
This information is general information only and has been prepared without taking into account your objectives, financial situation or needs. If you require advice that takes into account your personal circumstances, you should consult a licensed or authorised financial adviser.
INVESTMENT RISK
All investments are subject to risk, which means the value of your investment may rise or fall. Before making an investment decision, it is important to understand the risks that can affect the value of your investment. A summary of some of the main risks are outlined below. Please refer to section 10 of the PDS for a more comprehensive list of potential risks before making an investment decision.
Credit and default risk
- Credit risk is the risk that one or more of the debt assets to which the Fund is exposed may decline in price or fail to pay interest or principal when due because the credit counterparty or borrower experiences a decline in its financial status.
- Default risk is the risk that a borrower defaults on their obligations, for instance by failing to make a payment due or to return the principal. The taking of Security or the provision of third-party guarantees may not fully mitigate the risk of credit loss. These credit and default risks may result in losses for an investor in the Fund.
- Inflation can have the effect of reducing, in real terms, the returns from any investment. In particular, the cost of doing business can increase by virtue of inflation. CRE developments may become more costly in an inflationary environment.
- The Fund will invest in the Sub-Trust and the Sub-Trust will invest substantially all of its assets in the Master Trust. As such, the Fund may be exposed to risks that are specific to the Sub-Trust and the Master Trust. This may include operational risks, distribution risks, valuation risks, liquidity risks and tax risks that are specific to the Sub-Trust and the Master Trust.
- The investments of the Master Trust and accordingly the Fund and the Sub-Trust are generally less liquid investments than other investments (such as exchange traded investments) as the investments that the Trust is exposed to through the Sub-Trust and the Master Trust are medium to long dated (up to 10-year terms).
- The ability of the Fund, Sub-Trust and Master Trust to dispose of an investment may depend on market liquidity, the terms agreed with the relevant borrower and the maturity date of the loans. The liquidity of the investments to which the Fund (via the Sub-Trust and the Master Trust) is exposed will also be dependent on a borrower’s ability to repay a loan.
- Metrics as manager of the Sub-Trust and the Master Trust may cause the funds to invest in a variety of assets in differing proportions so as to best implement the investment objective applicable to those funds. Metrics as manager of the Sub-Trust may allocate capital to the Master Trust and direct assets in proportions as it may determine having regard to a number of factors. These may include (but are not limited to) availability of capital, origination of opportunities specific to the Master Trust and prevailing market conditions.
- The Fund, through the Sub-Trust and the Master Trust is invested entirely in the CRE asset class with substantially all of its exposure to CRE Debt (other than to the extent it is exposed to CRE Equity by virtue of investing in the Listed Fund). This means that the Fund may not offer the same degree of diversification as investment products which are diversified in other asset classes.
- The value of real estate investments to which the Fund is exposed is based on market forces and may fluctuate.
WHY INVEST IN THE FUND
The CRE loan market is an attractive market that has been difficult for retail investors to access. It has the potential to offer superior risk-adjusted returns, an alternative to traditional direct property investment and the opportunity to diversify an investors’ portfolio.6
As a leading non-bank commercial real estate lender,7 Metrics believes it is well placed to identify attractive opportunities and implement investment strategies across the CRE lending landscape, seeking to maximise returns from this asset class.
6 Diversification does not ensure profit or guarantee against loss. You should read the product disclosure statement (PDS) and seek independent financial advice before making investment decisions.
7A$13 billion in CRE AUM as at 28 February 2025.
EDUCATION
Read more
How to Reap the Potential Benefits of Commercial Real Estate Debt
It is possible to earn income from commercial real estate (CRE) without buying a stake in property. More asset managers…
Metrics named Real Estate Debt Manager of the Year
Metrics Credit Partners (Metrics) has been named the winner of the Real Estate Debt Manager of the Year: Asia-Pacific at…
How to invest
The minimum initial investment for an investor is $1,000.
To apply for units in the Fund, you can either:
a) Apply online
b) Contact your financial advisor to invest on your behalf
c) Make an investment via platform (Advisor only)
Applications can be submitted daily and Units will be issued monthly on each Issue Date.
Before making an application for units in the Fund, please read and consider the current Product Disclosure Statement (PDS) and Target Market Determination (TMD) carefully and in their entirety to assess whether the Fund is appropriate given your objectives, financial situation or needs.
Your capital is at risk. You may lose some or all of your investment.
Equity Trustees Limited ABN 46 004 031 298 AFSL 240975, is the Responsible Entity for the Metrics Real Estate Income Fund ARSN 671 699 228 (Fund). Metrics Credit Partners Pty Ltd (Metrics) AFSL 416 146 is the manager of the Fund. Before making an investment decision in respect of the Fund, you should read the PDS, TMD and full disclaimer at the base of this page.
Fund Terms
| Fund | Metrics Real Estate Income Fund | ||
| Manager | Metrics Credit Partners Pty Ltd (ABN 27 150 646 996, AFSL 416146) | ||
| Target Return | RBA Cash Rate plus 4.00% p.a. (net of fees)8 | ||
| Distributions | The fund intends to pay distributions monthly | ||
| Minimum Application Amount | $1,000 | ||
| Redemptions | Monthly (subject to 10 business days notice).9 View redemption request cut-off dates. | ||
| Management Fees and Costs | 0.58% p.a.10 of the Fund’s Net Asset Value. | ||
| Performance Fees | 15% above Hurdle of the RBA Cash Rate + 4.00% p.a. | ||
| Inception Date | 24 March 2025 | ||
| Responsible Entity | Equity Trustees Limited (ACN 150 646 996, AFSL 416146) | ||
| Unit Registry | Automic Pty Ltd trading as Automic Group | ||
| APIR Code | ETL6345AU | ||
8The target return is a target only and may not be achieved. The actual return of the Fund may be lower than the target return.
9 Subject to the Fund being liquid. Total redemptions will be limited to 5% of the Fund’s net asset value each month. If redemptions requests exceed 5% for any month, they will be reduced and processed on a pro rata basis and the remaining portion not processed will be cancelled.
10Excluding impact of performance fees.