SMSFs targeted with new commercial property fund
An investment manager has launched a listed commercial real estate debt fund aimed at meeting the increased demand for non-bank real estate financing.
Real estate investment manager Qualitas has launched a listed investment trust that aims to generate returns through commercial real estate loans.
The Qualitas Real Estate Income Fund offers exposure to the commercial real estate finance market by investing directly and indirectly in a portfolio of loans secured by real property mortgages.
Qualitas group managing director Andrew Schwartz said the trust offers exposure to the commercial real estate finance market in a listed format, which has “largely been inaccessible to direct and SMSF investors to date”.
“This is a significant addition to the listed investment landscape in Australia and will provide an opportunity for investors to diversify their portfolios with exposure to real estate loans secured by first or second mortgages,” said Mr Schwartz.
The trust, Qualitas said, is being launched at a time when demand for non-bank real estate financing is growing.
“Recent regulatory changes have forced Australian banks to reassess their exposures to the real estate market,” said Mr Schwartz.
“As authorised deposit-taking institutions move towards increasingly selective and conservative credit terms, more flexible forms of finance from alternative lenders are being provided to fill the gap.”