Invesco Real Estate announced the launch of Invesco Commercial Real Estate Finance Trust Inc., a private fund focused on bringing private real estate credit to accredited investors by originating, acquiring and managing a diversified portfolio of loans and debt-like preferred equity interests related to commercial real estate.
The company says INCREF is a non-exchange traded, perpetual-life real estate investment trust and will offer its shares pursuant to SEC Rule 506(c).
“We are pleased to expand our private credit offering to wealth management platforms as investors continue to look for ways to optimize risk-adjusted returns, especially during periods of uncertainty, high inflation, and rising rates,” said Bert Crouch, chief executive officer of INCREF and head of North America for Invesco Real Estate. “Our approach to real estate lending is focused on stable, current income and prioritizing capital preservation. The headwinds in today’s capital markets environment provide a particularly compelling entry point for Invesco Real Estate’s credit strategy.”
According to Invesco, INCREF implements a “property first” and “credit over yield” investment strategy by working with sponsors seeking loans for commercial real estate properties in markets in which the Invesco Real Estate has what the company says is “strong convictions.” The fund will primarily focus on “core-plus” credit and invest in Invesco Real Estate team’s highest conviction ideas across the commercial real estate universe, including multifamily, industrial, single-family rentals and self-storage.
“Private real estate credit is gaining the attention of accredited investors, who are seeking strategies to access an asset class that has not been traditionally available to them,” said Charlie Rose, president and lead portfolio manager of INCREF and global head of credit for Invesco Real Estate. “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.”
In May 2023, INCREF originated its first industrial property loan in Phoenix, Arizona and its first multifamily property loan in Sunnyvale, California, collectively totaling $178 million of gross loan commitments.
As of March 31, 2023, Invesco Real Estate had originated 180 loans in North America totaling $15.4 billion in originations and 232 loans globally totaling $17.3 billion in originations.
“For the last 40 years, Invesco Real Estate has benefitted from a rigorous, cycle-tested investment process to uncover attractive opportunities across the real estate investment spectrum,” said R. Scott Dennis, chairman of INCREF and global chief executive officer of Invesco Real Estate. “INCREF will leverage the depth and breadth of Invesco Real Estate’s underwriting, structuring and relationship-driven sourcing capabilities while seeking to provide its stockholders with stable, current income while also improving portfolio diversification.”
Invesco Commercial Real Estate Finance Trust, Inc. is a monthly net asset value non-listed real estate investment trust engaging in a continuous private offering exempt from the registration provisions of the SEC. INCREF is managed by Invesco Advisers Inc., a subsidiary of Invesco Ltd. and the registered investment adviser for Invesco Real Estate, the real estate investment center of Invesco Ltd.