Trez Capital's real estate private equity development fund sees first asset stabilization in Q3 2022
Trez Capital Private Real Estate Fund Trust (TPREF) continues to produce strong growth for Canadian investors
Q3 2022 Highlights
- Net Asset Value (NAV) growth
- First project reaches stabilization months ahead of schedule
- Projected stabilized value of assets exceeds $2 billion
- First two self-storage development assets added to the portfolio
VANCOUVER, BC and DALLAS, Nov. 24, 2022 /CNW/ - Trez Capital announces that the Trez Capital Private Real Estate Fund Trust ("TPREF") has grown assets under management in the fund to $210 million, which has a projected stabilized value of assets in excess of $2 billion. The fund provides qualified investors access to both real estate investment and development projects across Canada and the United States.
TPREF has generated 15.42% annualized return since the fund launched on August 31, 2021.
"We are proud of the continued results we have achieved since launching our private equity real estate fund. The continued Net Asset Value (NAV) growth is a testament to this," said John D. Hutchinson, Vice-Chairman & Global Head of Origination, Trez Capital. "The third quarter has shown strong initial leasing in the multi-family space. The shortage of rental units is apparent across the Sunbelt states. We are looking to fill the need that keeps growing in these areas."
Trez Capital will continue to leverage the equity platform that sources and executes real estate investment and development opportunities, mainly across the Sunbelt states. In the third quarter of 2022, the fund's multi-family development in Red Oak, Texas began leasing, and Estrella Vista, its 25-home single-family for-rent portfolio in Phoenix, Arizona, reached stabilization.
"We seek to deliver high-quality assets in enterprise-friendly regions with high job and population growth. With increased migration and increasing rates on mortgages, there has been a notable increase in demand for rental housing" said Sam Salloway, Managing Director, Head of Equity, Trez Capital. "TPREF reflects our fundamental approach to investing, which is to leverage our boots-on-the-ground insights to understand the intricacies of supply and demand pressures across real estate asset classes. Our main goal is to create long-term value for investors, and we are seeing opportunity in the build-to-rent space."
With access to private real estate projects at the development stage throughout key markets in the United States, it is anticipated that investors will share in significant capital appreciation during the initial years of TPREF, and a steady, growing stream of cash flow as the properties stabilize. TPREF is currently invested in projects representing over $2 billion in stabilized value.
In 2015, Trez Capital launched its first closed-ended Opportunity Fund, which was the company's first major foray into the private equity investment business. Since then, Trez Capital has successfully raised and placed five Opportunity Funds, each tracking in excess of their projected internal rate of return (IRR). In addition, we are in market with Trez Opportunity Fund VI, (TOF #6), which has an approximate Q4 2022 closing date.
TPREF* offers Trez Capital investors a new structure that combines attractive features including:
- a minimum investment of $25,000 CAD;
- monthly purchases;
- subsequent subscriptions of $5,000 CAD;
- enhanced liquidity versus traditional private equity vehicles; and
- a tax-efficient Trust structure that maximizes the capital appreciation and the long-term value of the Trust's units through the intention to primarily build and hold high-quality, well-located income-producing properties.
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*Disclaimer - is best suited for clients with a long-term horizon –typically five years or more, given the nature of the asset class and fund terms. Information presented in this material is for informational purposes only. Past performance is not indicative of future performance and cannot be solely relied upon. Please consult the offering memorandum. |
Distributions of Distributable Cash, if any, at each quarter end following the initial 24-month non-distribution stage. |
Founded in 1997, Trez Capital is a diversified real estate investment firm and preeminent provider of commercial real estate debt and equity financing solutions in Canada and the United States. Trez Capital offers private and institutional investors strategies to invest in a variety of opportunistic, fully secured mortgage investment funds, syndication offerings and real estate joint-venture investments; and provides property developers with quick approvals on flexible short- to mid-term financing.
With offices across North America, Trez Corporate Group has over $5.3* billion CAD in assets under management and has funded over 1,700 transactions totalling more than $16.5 billion CAD since inception. For more information, visit www.trezcapital.com. (*Trez Corporate Group AUM includes assets held by all Trez-related entities as well as $2.9 billion Manager AUM (Trez Capital Fund Management Limited Partnership)).
SOURCE Trez Capital
Sarah Haney, Trez Capital, 647.460.2029, [email protected]
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