Rest, one of Australia’s largest profit-to-member superannuation funds, is strengthening its position in Australian private credit as it continues to benefit from lending opportunities in the property sector.
The super fund has increased its investment in Australian asset manager Metrics Credit Partners’ (Metrics) Real Estate Debt Fund (REDF), further diversifying Rest’s private markets and whole of fund exposures.
Andrew Lill, Rest’s Chief Investment Officer, said this investment provides the fund with the ability to capitalise on attractive conditions in the non-bank lending market.
“REDF offers an opportunity to grow Rest members’ savings through investment in a diversified portfolio of high-quality commercial real estate loans across residential and industrial projects.
“With its attractive risk-adjusted return profile, we expect REDF will deliver strong results to Rest members.
“With a combination of higher interest rates and traditional banks scaling back commercial real estate lending, we believe non-bank lenders have a good opportunity to participate in the sector with terms that are typically more favourable than seen previously.”
Australian lenders commonly charge both a line fee and a margin for assets before they are constructed, leading to potentially higher levels of return than similar overseas loans.
“We believe the characteristics of the Australian commercial real estate market also offer unique advantages compared to overseas markets that further build on REDF’s compelling investment proposition,” said Lill.
Metrics Managing Partner, Andrew Lockhart, said Rest's increased allocation to the Metrics Real Estate Debt Fund underscored the value of Metrics’ strategic and competitive real estate private credit solutions.
"As a leading Australian asset manager, Metrics Credit Partners prides itself on its leadership in the Australian asset management space. Rest’s expanded investment demonstrates the value of the REDF and confidence in the fund's strategic approach. We look forward to continuing our momentum together, helping the fund and its members to leverage the distinctive opportunities and continued growth potential within the Australian real estate market.”
The REDF will be deployed into Australian commercial real estate loans across a wide range of sectors including residential, industrial and specialised real estate assets.
About Rest
Established in 1988, Rest is one of Australia’s largest profit-to-member superannuation funds, with around two million members and around $85 billion in funds under management as at 31 March 2024.
Michael Mills
Senior Manager, Communications – Media Relations
michael.mills@rest.com.au
m: 0428 499 722
Emma Kerswell
Senior Manager, Communications – Consumer and Content
emma.kerswell@rest.com.au
m: 0498 709 830
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