Non-bank lender and asset manager Metrics is expanding access to its established real estate debt strategy with the launch of the Metrics Real Estate Income Fund for retail investors.
The fund provides investors with monthly income from a diversified portfolio of Australian commercial real estate loans, targeting a return of the RBA cash rate plus 4.00% p.a. (currently 8.10% p.a.) net of fees.
Metrics managing partner, Andrew Lockhart, said: “The Metrics Real Estate Income Fund offers investors the opportunity to gain immediate exposure to a well-diversified portfolio of in excess of 120 individual commercial real estate loans across primarily the industrial and residential sectors.
“The Fund gains exposure to the MCP Real Estate Debt Fund which was established in October 2017 and has a track record of delivering on its objectives for investors.”
To this point, the fund has only been available to wholesale and institutional investors.
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The underlying fund has been running for almost 8 years and gives investors access to:
– +$4.4B AUM
– 123 individual CRE loans
– 99% senior ranking
– 0.7yrs credit duration
– 11.09% net 1yr return
– +6.80% over the 90 BBSW since inception.
Metrics says that the commercial real estate 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.
As a leading non-bank commercial real estate lender, Metrics believes it is well placed to identify attractive opportunities and implement investment strategies across the commercial real estate lending landscape, seeking to maximise returns from this asset class.
