Metrics Real Estate Multi-Strategy Fund IPO (ASX:MRE)

A New Way to Invest in Commercial Real Estate

Metrics Credit Partners (Metrics), a leading Australian alternative asset manager with approximately $20 billion of private debt and equity investments, has launched an initial public offer (IPO) for stapled units in the Metrics Real Estate Multi-Strategy Fund¹ (ASX:MRE)(Fund).

The Fund provides an opportunity for investors to obtain broad exposure to commercial real estate (CRE) investments.

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The Fund is a stapled structure consisting of the Metrics Real Estate Multi-Strategy Passive Trust 679 413 293 (Passive Trust) and the Metrics Real Estate Multi-Strategy Active Trust ARSN 679 413 695 (Active Trust).

Why Invest?

Attractive Risk-Adjusted Return
The Fund targets a total return of 10.00% – 12.00% p.a. (net of management fees and upfront and ongoing expenses) through the economic cycle (Target Total Return).²

Portfolio Diversification
Immediate access to an existing diversified portfolio of private market CRE debt and equity investments via the Fund’s exposure to the MCP Real Estate Debt Fund and the Metrics Real Estate Equity Opportunities Fund (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 obtained via its exposure to the Wholesale Funds.

Experienced and Active Investment Team
Metrics has a team of over 150‌ professionals, including its Investment Team, whose members have on average 35‌ years of market experience covering all aspects of CRE investment. Metrics has deep relationships with property development companies and sponsors that underpin the capability to originate attractive CRE debt and equity investments.

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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.

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

The Offer

The Responsible Entity is offering Unit Sets for subscription at a Subscription Price of A$2.00 per Unit Set to raise a target amount of A$300‌ million with the ability to accept oversubscriptions. The Offer may proceed with a lower amount, subject to minimum gross proceeds from the Offer received from Wholesale Clients of A$100‌ million. If successful, you will receive units in each of the Passive Trust and Active Trust, which will form a Unit Set quoted on the ASX.

Applicants must subscribe for at least $2,000‌ worth of Unit Sets (i.e. 1,000‌ Unit Sets).

ASX Code

MRE

Fund

Metrics Real Estate Multi-Strategy Fund comprised of Unit Sets in the Passive Trust and the Active Trust.

Minimum number of Stapled Units available under the Offer

100 million, being 50 million Unit Sets

Minimum gross proceeds from the Offer

A$100 million

Target number of Stapled Units available under the Offer

300,000,000, being 150 million Unit Sets

Target gross proceeds from the Offer (Target Subscription)⁴

A$300 million

Offer opens (9:‌00‌am Sydney time)

10‌ Sept‌ember 20‌24

Offer closes (5‌:00‌pm Sydney time)

25‌ Sept‌ember 20‌24

Trading of Stapled Units commences on ASX

16‌ Oct‌ober 20‌24

The Responsible Entity may determine to accept subscriptions in excess of the Target Subscription and to proceed with an amount lower than the Target Subscription, subject to the Listing Rules.

The above timetable is indicative only and may change. The Responsible Entity reserves the right to vary the dates and times set out above subject to the Corporations Act and other applicable law. Subject to its duties under applicable law, the Responsible Entity also reserves the right to close the Offer early, extend the Closing Date for the Offer or accept late Applications, without notifying any recipients of this PDS or any Applicant, and/or vary the terms of the Offer (where reasonable and having regard to relevant conditions, the circumstances of the Offer and the commercial needs of the Fund). Investors who wish to submit an Application are encouraged to do so as soon as practicable after the Offer opens.

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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 Stapled Units 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. Some of the key risks in relation to an investment in the Fund are noted below. 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
Investment strategy risk
Credit and default risk
Interest rate risk
Property market risk
Development risk
Financing risk
Portfolio construction risk
Valuation risk

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 and Lonsec Research Report. Ratings are only one factor to be taken into account when making an investment decision. Please visit www.metrics.com.au/mre to request the report.

About Metrics

Metrics is an Australian-based alternative asset management firm and is an active participant in Australian fixed income, private credit, equity and capital markets and currently manages approximately A$20 billion worth of private debt and equity investments.

Metrics launched its first wholesale fund in 2013 and is the appointed manager of a number of wholesale and retail (ASX listed and unlisted) investment trusts including the Metrics Master Income Trust (ASX:MXT) and Metrics Income Opportunities Trust (ASX:MOT), which successfully listed on the ASX in October 2017‌ and April 2019‌ respectively.

This communication is issued by The Trust Company (RE Services) Limited ABN 45‌‌ 003‌‌ 278‌‌ 831‌‌ AFSL 235‌‌ 150‌‌ (Perpetual) as responsible entity of the Metrics Real Estate Multi-Strategy Fund (a stapled structure consisting of the Metrics Real Estate Multi-Strategy Passive Trust ARSN 679‌ 413‌ 293‌ and the Metrics Real Estate Multi-Strategy Active Trust ARSN 679‌ 413‌ 695‌ (Fund). 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 Fund, you should consider the current Product Disclosure Statement and Target Market Determination available at www.metrics.com.au/mre, and assess whether the Fund 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.

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) ratings (assigned 3 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.