Current Unit Price: (20 min. delayed price) ASX:MXT $2.11 0.48%
NAV as at COB: 18.12.24 $2.0077
Current Unit Price: (20 min. delayed price) ASX:MOT $2.12 0.00%
NAV as at COB: 18.12.24 $2.1504
Current Unit Price: (20 min. delayed price) ASX:MRE $1.98 0.00%
NAV as at COB: 29.11.24 $2.0128

METRICS REAL ESTATE
Multi-strategy fund

ASX: MRE

A new way to invest in commercial real estate.

Fund OVERVIEW

Investment Objective

Investor Information

FUND OVERVIEW

The Metrics Real Estate Multi-Strategy Fund (Fund) is a stapled structure consisting of the Metrics Real Estate Multi-Strategy Passive Trust ARSN 679 413 293 (Passive Trust) and the Metrics Real Estate Multi-Strategy Active Trust ARSN 679 413 695 (Active Trust) jointly quoted on the ASX as stapled securities. An interest in the Fund consists of one Unit in the Active Trust and one Unit in the Passive Trust (each, a Trust) which are stapled (Unit Set). 

The Trust Company (RE Services) Limited is the responsible entity and Metrics Credit Partners Pty Ltd (Metrics) has been appointment as the manager of each Trust.

The Fund provides investors the opportunity to obtain broad exposure to commercial real estate (CRE) investments in Australia and New Zealand. The Fund may also gain exposure to CRE investments in Developed Asia.

DOCUMENTS

TARGET RETURN

The Fund targets a total return of 10.00 -12.00 % p.a. (net of management fees and upfront and ongoing expenses of the Fund) through the economic cycle (Target Total Return).1

The Target Total Return of the Fund includes movements in net asset value, cash returns paid to investors via distribution and dividend payments, franking credits and any additional returns. Unitholders will receive either pre-tax distributions from the Passive Trust or post-tax dividends from the Active Trust, with attached franking credits.1

1 This is a target only and may not be achieved. The actual return of the Fund may be lower than the Target Total Return. All investments, including an investment in the Fund, are subject to risk, including capital loss. In calculating the Target Total Return, Metrics has relied on a number of assumptions which may not always be correct, including (without limitation) that the Fund and its investments will operate in markets that are generally absent of market or economic shocks that could have a material impact on Australian or international financial markets.

Investment Objective2

The Fund seeks to provide investors with exposure to a diversified portfolio of private markets CRE Investments covering the entire capital structure from senior secured first registered mortgage debt investments through to equity with a view to deliver to investors the Target Total Return. The Fund seeks to provide monthly cash income, seeks to preserve investor capital and manage investment risks, whilst providing potential equity upside.
2 This is an objective only and may not be achieved. In particular, there is no guarantee that the Fund will be successful in delivering the Target Total Return. An investment in the Fund is subject to risk, including capital loss.

Investment Strategy

The Fund’s Investment Strategy is to gain exposure to a portfolio of mostly private markets investments covering the entire capital structure from lower risk Senior Secured first registered mortgage loans to higher risk and potentially higher returning investments held with Equity investment in CRE development projects. Through active origination, portfolio construction and risk management the Manager will seek to lower investment risk via diversification of investment portfolios. This will be accomplished by investing in the Metrics CRE Multi-Strategy (Debt) Trust and the Metrics CRE Multi- Strategy (Equity) Trust, each of which, in turn, will invest in and alongside the Wholesale Funds.

It is expected that the Fund’s capital will be invested as follows:

– 50% to the Passive Trust and through it, exposure to diversified CRE Debt Investments broadly reflecting the types of lending activity in Australia’s CRE Debt market, diversified by borrower, project, sector, geography, stage of development and position in the capital structure; and

– 50% to the Active Trust and through it, exposure to Equity or hybrid Equity such as Preferred Equity or CRE Debt Investments in CRE development projects and investments. These proportions may change from time to time as determined by the Manager according to how it believes the investment objective of the Fund can be best achieved.

Current Unit Price

Fund Highlights

Portfolio Diversification

Immediate access to an existing diversified portfolio of private market CRE debt and equity investments via the Fund’s indirect exposure to the MCP Real Estate Debt Fund (REDF) and the Metrics Real Estate Equity Opportunities Fund (MREPIIM) (together the Wholesale Funds)

Monthly Cash Income3

Income is generated from exposure to CRE debt instruments – predominantly loans to borrowers who need capital for CRE activities

Equity Upside Potential

The Fund may generate equity upside from its exposure to a portfolio of CRE investments obtained via its exposure to the Wholesale Funds. 

ASX Market Liquidity

Unit Sets are jointly quoted on the ASX to provide liquidity via secondary market trading4

3  The payment of distributions to Unitholders is dependent on the Trusts receiving distributions from their investments, and these are not guaranteed.

4 Unit Sets will be subject to trading liquidity on the ASX. There is no guarantee that Unit Sets will be able to be held at a price equal or higher to that at which they were acquired.

Key Risks

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 financial performance of the Fund. There is no guarantee that the interests in the Fund offered under the PDS will provide a return on capital or repayment of capital, lead to payment of distributions or that there will be any increase in the value of the Unit Sets. Please refer to Section 7 of the PDS for a more comprehensive summary of potential risks before making an investment decision.

  • Investment and market risk: An investment in the Fund is subject to investment and market risk, including the possible loss of the entire amount invested.

  • Investment strategy risk: There is no guarantee that the Investment Strategy of the Fund will be managed successfully or will meet its objectives. Failure to do so could negatively impact the performance of the Fund.

  • Credit and default risk: One or more of the debt assets to which the Fund is exposed may decline in price or that a borrower fails to pay interest or principal when due because the borrower experiences a decline in its financial status. Losses may occur because the value of the asset is affected by the creditworthiness of the borrower or by general economic and specific industry conditions.

  • Interest rate risk: As the investments of the Fund may include instruments with floating interest rates, income from these investments can rise or fall and accordingly, the return on that investment relative to other investments may change.

  • Property market risk: The value of real estate investments to which the Fund is exposed is based on market forces and may fluctuate.

  • Development risk: Certain assets to which the Fund is exposed may be development projects which are subject to specific development risks such as obtaining planning approval, risks pertaining to construction and engineering.

  • Financing risk: The Fund may be exposed to developments that have incurred debt. Any failure by those persons to repay or honour the terms of such debt may entitle the financier to take action which will be adverse to the Fund’s interests.

  • Portfolio construction risk: the portfolio construction of the Fund is subject to change and may not reflect investors’ desired exposure.

  • Valuation risk: The Fund will gain exposure to illiquid assets which will require independent valuation. Independent valuations are inherently subjective and in determining value, a valuer will be required to make certain assumptions and such assumptions may prove to be inaccurate. This means that valuations may not be reflective of the price that is obtained on the sale of such an asset and in those cases the value an asset is sold for may be less than the price at which it has been valued. When this occurs, the net asset value of the Fund will be negatively impacted.

Investor Information

Listed

16 October 2024

ASX Code

MRE

Market Cap*

$299.05M

Net asset value**

$305.97M

Unit Price*

$1.975

NAV per unit set**

$2.0128

Distribution per unit (cents)**

0.80

Distribution per unit (%)**

0.40%

*20 min delayed ASX traded price
**As at 30 November 2024. 
 

ASX Announcements

Stay up to date with ASX announcements including latest earnings, annual reports, important performance updates and other information.

Research

The Fund has been independently rated by Zenith Investment Partners and Lonsec Research.

Note: You must be a financial advisor or wholesale investor to obtain the Zenith Investment Partners and Lonsec Research Reports.
Ratings are subject to Terms and Conditions which can be found here: Ts and Cs
Ratings are only one factor to be taken into account when making an investment decision.

Fund Terms

Fund

Metrics Real Estate Multi-Strategy Fund comprised of the Metrics Real Estate Multi-Strategy Passive Trust ARSN 679 413 293 (Passive Trust) and the Metrics Real Estate Multi-Strategy Active Trust ARSN 679 413 695 (Active Trust)

Responsible Entity

The Trust Company (RE Services) Limited ACN 003 278 831 AFSL 235 150

Manager

Metrics Credit Partners Pty Ltd ACN 150 646 996 AFSL 416 146

Distributions

Monthly distributions from the Passive Trust.6 Distributions from the Active Trust will be less frequent, as distributions follow the receipt of proceeds from the realisation of CRE Co-Investment Assets. The target first distribution date5 for the Fund is 8 November 2024.

Pricing

Monthly (NAV per unit set calculated at end of each calendar month).

Application / Redemptions

Daily via ASX

Management Fees and Costs

1.29% p.a. of NAV until the 1st anniversary of trading on the ASX, and thereafter 1.54% p.a. of NAV7

Performance Fees

15.38% p.a. of the Unit Set Return in excess of the Fund Hurdle (inclusive of GST net of RITCs)8

Responsible Entity

The Trust Company (RE Services) Limited ACN 003 278 831 AFSL 235 150

Unit Registry

Automic Group

5 This is a target only and may not be achieved. Neither Metrics nor the Responsible Entity guarantees or warrants the future performance of the Fund, the return on an investment made under this PDS, the repayment of capital or the payment of distributions on the Unit Sets.
6 The payment of distributions to Unitholders is dependent on the Trusts receiving distributions from their investments, and these are not guaranteed and are paid at the Responsible Entity’s discretion.
7 These figures assume a target subscription of A$300 million.
8 No performance fee is expected to be paid during the first 12 months of the Fund’s operation.

Education

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All website content in respect of the Metrics Real Estate Multi-Strategy Fund (a stapled structure consisting of the Metrics Real Estate Multi-Strategy Passive Trust ARNS 679 413 293 and the Metrics Real Estate Multi-Strategy Active Trust ARSN 679 413 695) (Fund) is issued by The Trust Company (RE Services) Limited ABN 45 003 278 831 AFSL 235 150 (Perpetual). Metrics Credit Partners Pty Ltd ABN 27 150 646 996 AFSL 416 146 (Metrics) is the investment manager. Perpetual is the issuer of units in each Trust.

The information provided in this communication is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision in respect of the Trust, you should consider the current Product Disclosure Statement (PDS) and Target Market Determination (TMD), which are available at www.metrics.com.au/mre, and assess whether the Trust is appropriate given 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.

Neither Perpetual nor Metrics guarantees repayment of capital or any particular rate of return from the Fund. Neither Perpetual nor Metrics gives any representation or warranty as to the currency, reliability, completeness or accuracy of the information contained in this communication. All opinions and estimates included in this communication constitute judgments of Metrics as at the date of creation and are subject to change without notice. Past performance is not a reliable indicator of future performance.

An investment in the Fund is subject to investment and other known and unknown risks, some of which are beyond the control of Perpetual or Metrics including loss of income and principal invested. It is not a deposit with, nor does it represent a liability of Perpetual, Metrics or any other person. None of Perpetual, Metrics, their related bodies corporate or any other person guarantees the capital value or performance of the investment of the Fund or guarantees any particular return from the Fund, increase in the value of any amount invested in the Fund or repayment of any amount invested in the Fund. Prospective investors should consider the key risk factors set out in this website and in the PDS. There may be risk factors applicable to the Fund that have not been set out in this website or in the PDS.

This Website contains or may contain certain “forward-looking statements” and comments about future events, that are based on Metrics’ beliefs, assumptions and expectations and on information currently available to management as at the date of this website.

The words “expect”, “anticipate”, “estimate”, “intend”, “believe”, “guidance”, “should”, “could”, “may”, “will”, “predict”, “plan” and other similar expressions are intended to identify forward-looking statements. Any indications of, and guidance on, future operating performance and estimates, earnings, financial position and performance and estimates concerning the timing and success of strategies, plans or intentions are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this website are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions.

These forward-looking statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance and may involve known and
unknown risks, uncertainties and other factors, many of which are outside the control of Metrics. Neither Perpetual nor Metrics guarantees the repayment of capital or any particular rate of return from the Fund.

Actual results, performance or achievements could be significantly different from those expressed in, or implied by, these forward-looking statements. No representation, warranty or assurance (express or implied) is given or made in relation to any forward-looking statement by any person (including Metrics, Perpetual or any of their respective advisers). In particular, no representation, warranty or assurance (express or implied) is given that the occurrence of the events expressed or implied in any forward-looking statements in this website will actually occur. Any forward looking statements contained in this website are based on an assessment of present economic and operating conditions and on a number of assumptions regarding future events and actions that, at the date of this website, are anticipated to take place. The Fund may not achieve /perform as forecast as a result of factors, both known and unknown, including (but not limited to) one or a combination of the risks outlined in this website.

Actual operations, results, performance, targets or achievement may vary materially from any projections and forward-looking statements and the assumptions on which those statements are based.

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) ratings (assigned 03 September 2024) referred to in this piece are limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines here: https://www.zenithpartners.com.au/our-solutions/investment-research/regulatory-guidelines/

The rating issued 09/2024 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2024 Lonsec. All rights reserved.

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