Something a bit different for anyone who's interested. Essentially real estate debt with returns closer to equities. Probably most similar to MXT in that it's private debt, but property specific and higher up the risk curve.
QRI will be a LIT from specialist real estate investment management firm Qualitas. This is their first foray into retail, they run a fair amount for HNW private investors locally. QRI's target portfolio return is 7.5% p.a. to 8.0% p.a. Given the exposure is via secured real estate loans, portfolio volatility would be reasonably expected to be very low in comparison to equities. Accordingly, risk adjusted returns should be attractive.
I think they are good at what they do and their past record is solid (albeit in a strong market). At this point on the cycle, I'd rather hold quality real estate debt than equity if I was looking at unlisted exposures. There could be some good opportunity to pick up yield if the SP fades a bit post listing.
