Invesco Launches First Non-Traded REIT
Invesco, a global investment manager with $1.3 trillion in assets under management, has launched Invesco Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust that seeks to raise up to $3 billion to purchase stabilized, income-oriented commercial real estate in the United States, and to a lesser extent, real estate-related securities.
Invesco, a global investment manager with $1.3 trillion in assets under management, has launched Invesco Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust that seeks to raise up to $3 billion to purchase stabilized commercial real estate in the United States.
The REIT’s target portfolio consists of at least 80 percent private real estate and up to 20 percent real estate-related securities, with the intent to diversify globally.
Invesco REIT currently owns a portfolio of healthcare, cold storage, multifamily, and net-leased research and development assets valued at $138.6 million, as well as $4.9 million in real estate-related securities, and $106.9 million in investments in unconsolidated entities.
The offering consists of up to $2.4 billion in shares of common stock in the primary offering and up to $600 million through its distribution reinvestment plan. There are five share classes, Class T, Class S, Class D, Class I and Class E, with shares priced at net asset value per share plus applicable upfront selling commissions and fees. As of April 30, 2021, the NAV per share was approximately $27.57.
Class T shares include selling commissions of up to 3.0 percent of the transaction price, a 0.5 percent dealer manager fee, an annual 0.65 percent advisor stockholder servicing fee, and an annual 0.20 percent dealer stockholder servicing fee.
Class S shares include selling commissions of up to 3.5 percent, no dealer manager fees, and an annual 0.85 percent stockholder servicing fee.
Class D shares include selling commissions of up to 1.5 percent, no dealer manager fees, and an annual 0.25 percent stockholder servicing fee.
There are no selling commissions, dealer manager fees, or stockholder servicing fees for Class I and Class E shares.
A 1.0 percent management fee will be paid to the adviser for all share classes except Class E shares.
The minimum initial investment is $2,500, except for Class I shares, which is $1 million.
Class T and Class S shares are available through brokerage and transactional-based accounts; Class D shares are generally available for purchase through fee-based programs; Class I shares are available to institutional investors, and Class E shares are for the REIT’s executive officers and directors and their immediate family members, officers and employees of the adviser, and other Invesco accounts.
Invesco Distributors Inc. serves as the dealer manager, and Invesco Advisers is the REIT’s adviser.
The REIT initially commenced operations in September 2020 via a $400 million private placement offering of Class N shares and sold nearly 6.3 million shares for approximately $164.3 million. Massachusetts Mutual Life Insurance Company agreed to purchase up to $200 million before September 28, 2021, and owns $145.8 million Class N shares. The remaining outstanding Class N shares are owned by Invesco Realty ($14.6 million), as well as members of the board and employees of the REIT’s adviser and its affiliates ($4 million). According to the prospectus, MassMutual has a material financial interest in Invesco, the REIT’s sponsor, and has the right to designate a member of its board.
On May 14, 2021, the 156,066 Class N shares held by the REIT’s directors and the adviser’s employees and affiliates were exchanged for Class E shares on a one-for-one basis.
