Wholesale Investment Opportunity – Metric Fund

The fund will target 15%+ IRR (net of fees and costs), giving investors access to the strong and attractive returns of direct CRE equity investment opportunities originated by Metrics. 

The investment opportunities are originated via their Development Partner Model (outlined in screenshot below) that Metrics have with highly skilled and experienced CRE groups via joint ventures (JV’s). Metrics’ pipeline of opportunities is very strong and we anticipate minimal delay in deploying the capital.

The Metrics team will be co-investing a minimum of $5M into this fund, ensuring client alignment.

Key Features

Highlights

  • Access to a strong opportunity pipeline via Metrics’ extensive relationships.
  • Attractive total returns
  • Target return 15% IRR net of fees and costs

Investment Objective

  • To provide attractive risk adjusted returns including;
  • Opportunistically delivering equity upside
  • Active risk management
  • Downside capital preservation
  • Balance delivery of the target return while seeking to preserve investor capital

Investment Strategy

  • Actively originate, structure and co-invest in real estate assets
  • Engage directly with project sponsors to provide capital that drives equity value
  • Return focused objective with mandate to cover Australia and New Zealand and all CRE asset classes including residential, industrial, commercial and specialised use
  • The fund can invest in development and income-generating assets

Key Terms

Fund Structure – Closed end wholesale unit trust with a total fund term of 5 years. After the initial 3 year period, Investors have the right to request return of capital on an annual basis which will be provided for subject to asset maturity run-off

Fund Currency – AUD

Target Return – 15% IRR net of fees and costs

Target size – Up to $200 million

Hurdle Rate – 10% IRR net of fees and costs

Distribution & Reinvestment – Half-yearly cash distributions which may be reinvested for additional units

Capital Calls – 10 business days’ notice

Leverage – Facility to fund investment activities and working capital (maximum 30%)

Fees (Excl. GST)

Management Fee: 1.00% p.a

Asset Transaction Fee: 0.50% on the transaction value

Performance Fee: 15% of outperformance above the Hurdle Rate

Trustee, Custodian, Admin and other expenses as incurred

To get a more detailed overview of the fund and case studies of previous projects completed by Metrics, please click here to download a copy of the presentation.

If you would like to discuss the above outlined fund in detail and want more information, please contact us on clientservices@primefinancial.com.au or 1800 064 959.

The information in this article contains general advice and is provided by Primestock Wealth Management Pty Ltd (Primestock Wealth) AFSL No. 240277. This advice has been prepared without taking your personal objectives, financial situation or needs into account. Before acting on this general advice, you should consider the appropriateness of it having regard to your personal objectives, financial situation and needs.

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