Invesco Real Estate has established Invesco Commercial Real Estate Finance Trust Inc. (INCREF), a private fund focused on bringing private real estate credit to accredited investors. INCREF will do this by originating, acquiring and managing a diversified portfolio of loans and debt-like preferred equity interests related to commercial real estate.
INCREF is a non-exchange traded, perpetual-life real estate investment trust (REIT) 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,” says Bert Crouch, CEO of INCREF and head of North America for Invesco Real Estate.
INCREF implements a property-first and credit-over-yield investment strategy by working with experienced sponsors who are seeking loans for commercial real estate properties. The fund will primarily focus on core-plus credit and invest in multifamily, industrial, single-family rentals and self-storage properties.
In May, INCREF originated its first industrial property loan in Phoenix and its first multifamily property loan in Sunnyvale, Calif., collectively totaling $178 million of gross loan commitments.
As of March 31, 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.