The Schroders RF Real Estate Debt Fund is a real estate private debt fund that invests in a diversified portfolio of loans secured over Australian real property.
The Fund aims to achieve income returns in excess of 5% above the RBA Cash Rate per annum after fees and expenses in the medium to long term.
The Fund may be suitable for wholesale investors seeking a real estate private debt fund that provides regular income returns but who do not require short term liquidity in their investment. The minimum suggested holding period is 3 years.
Investors should be aware that real estate debt is an illiquid asset class and the assets of the Fund are expected to be illiquid.
An experienced team
Schroders RF brings a unique combination of lending and property skills, which results in better assessment of potential loan opportunities. Our experienced Origination team and Credit Committee team boasts a combined total of over 175 years’ real estate industry experience.
In addition to its extensive lending skills, Schroders RF boasts in-house insolvency, asset management and recovery and property development skills, which brings a more rounded view to assessing the risk and helps to maximise the recovery from any loans that may go into default. Having the property expertise gives a better understanding of the risks in a transaction, allowing the loan to be structured to minimise those risks or simply declining the loan opportunity if the risk is considered too high. This is essential during periods of turbulence in the property market.
Additionally, having a nimble on-the-ground team of real estate experts allows the flexibility, reach and commitment to supporting borrowers even during market turbulence as experienced during the recent pandemic.
|Investment return objective||To achieve income returns in excess of 5% above the RBA Cash Rate per annum after fees and expenses in the medium to long term.
There is no guarantee that the return objective will be achieved.
|Target distribution frequency||Monthly, subject to available cash|
|Management fees and costs (incl. GST)||Estimated at 1.187% of net asset value|
|Performance fee (incl GST)||20.5% of the Fund’s performance in excess of the hurdle rate of RBA Cash Rate + 5%|
|Inception date||30 November 2021|
|Trustee||Schroder Investment Management Australia Limited (Schroders)|
|Investment manager||Schroders RF Limited (Schroders RF)|
How to invest in our real estate private debt fund
If you are interested in investing in the Fund, or would like further information, please contact us.