July 9 2024
Media Release

Rest further diversifies private credit with additional Australian real estate investment

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
m: 0428 499 722

Emma Kerswell
Senior Manager, Communications – Consumer and Content
m: 0498 709 830

This information has been prepared without taking account of your objectives, financial situation or needs. Before acting on the information or deciding whether to acquire or hold a product, consider its appropriateness and the relevant PDS and TMD which is available at rest.com.au/pds. Issued by Retail Employees Superannuation Pty Limited ABN 39 001 987 739, AFSL 24 0003 (Rest), trustee of Retail Employees Superannuation Trust ABN 62 653 671 394

Rest media releases are point-in-time statements and are current as at the date of publication. Information may not be current and up to date after the date of publication. Please note the date of issue and check Rest’s website for other information on the same or related matters.