Invesco Real Estate has rolled out Invesco Commercial Real Estate Finance Trust, a non-traded real estate investment trust that aims to bring private real estate credit to accredited investors.
The Dallas-based manager is responding to factors that include an ability to expand private credit offerings to wealth management platforms at a time when this group of investors is seeing better risk-adjusted returns and greater exposure to real estate credit opportunities, said Bert Crouch, chief executive of INCREF and head of North America for Invesco Real Estate. This is especially true during periods of uncertainty, high inflation, and rising rates, he added.
The REIT will originate, acquire, and manage a diversified portfolio of loans and preferred equity investments. “Our approach to real estate lending is focused on stable, current income, and prioritizing capital preservation,” Crouch said, adding that the headwinds the market is seeing today present a compelling entry point for the firm.
Invesco will work with seasoned sponsors in markets where the firm has strong convictions, focusing on core-plus credits. It will look at properties in the multifamily, industrial, single-family rental and self-storage sectors.
“The recent pull-back of regional banks, coupled with the significant increase in short-term interest rates, is resulting in a rare opportunity for commercial real estate lenders. Our established credit platform is positioned to take full advantage of the current dislocation in the near-term while seeking to minimize volatility through all stages of the credit cycle in the long term,” said Charlie Rose, president and lead portfolio manager of INCREF and global head of Credit for Invesco Real Estate.
The REIT has already originated its first loans, providing financing on an industrial property in Phoenix and a multifamily property in Sunnyvale, California. The loans totaled $178 million of gross commitments. Both loans were originated for third-party, relationship borrowers. As of March 31, the firm had originated 180 million loans totaling $15.4 billion and 232 loans globally totaling $17.3 billion.
A handful of other managers offer credit-focused private real estate investment trusts, including KKR Real Estate.
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