This article is from the Australian Property Journal archive
THE Qualitas Real Estate Income Fund (QRI) is launching a $151 million non-renounceable entitlement offer and shortfall offer, with proceeds to be invested into identified commercial real estate loans.
The entitlement offer is being offered at one new unit for every five existing units in the Trust at an offer price of $1.60 per new unit.
The offer price represents a 2.1% discount to the last closing price of $1.64, and a 2.8% and 3.4% discount to the 10-day and 30-day VWAP.
“The structural shift in the lending environment for commercial real estate in Australia, coupled with significant institutional investor demand for private credit has underpinned Qualitas’ growth since inception 16 years ago,” said Mark Power, head of income credit, Qualitas.
“Back in 2018 we started to see increasing demand from retail and wholesale investors for investment solutions that could deliver regular income. Leveraging our deep expertise in real estate private credit we launched the Qualitas Real Estate Income Fund (ASX:QRI), which today is Australia’s largest listed mortgage REIT and is included in the S&P/ASX 300 and S&P/ASX 300 A-REIT indices.”
“QRI’s fund size has more than tripled since IPO and the raise seeks to increase QRI’s scale, which will provide unitholders with increased liquidity and portfolio diversification.
“In a higher-for-longer interest rate environment we remain highly disciplined and selective – investing in only the most attractive risk-adjusted opportunities.”
QRI continues to deliver monthly distribution with a 12-month net return and distribution return of 8.73% per annum and 8.69% per annum respectively.
In the middle of last year, Qualitas secured a $550 million investment from a North American global investor to be invested in commercial real estate private credit across construction loans, predevelopment land loans and investment loans, as Australia becomes a destination of choice for private debt.