Invesco Real Estate Closes on $1.7 billion of Loan Commitments Across 24 Loans in North America through 3Q24

Rhea-AI Summary

Invesco Real Estate has closed $958 million in loan commitments across 11 floating rate senior loans in North America and one whole loan facility in Europe during Q3 2024. The company's total loan commitments in North America reached $1.7 billion across 24 loans year-to-date. The Q3 originations represented a 126% quarter-over-quarter increase, marking six consecutive quarters of growth. The loans primarily cover industrial, multifamily, and self-storage properties. Notable transactions include a €272 million European logistics facility loan and multiple floating-rate senior loans ranging from $11.3 million to $128 million across various U.S. locations.

Positive

• 126% quarter-over-quarter increase in investment activity
• Six consecutive quarters of loan origination volume growth
• $1.7 billion in total loan commitments in North America YTD
• Diversified portfolio across industrial, multifamily, and self-storage properties

Negative

• None.

Insights

Financial Analyst

The significant $1.7 billion in loan commitments demonstrates Invesco's robust growth in real estate credit, with a notable 126% quarter-over-quarter increase in investment activity. The diversified portfolio across industrial, multifamily and self-storage properties reduces sector-specific risks. The company's strategic focus on floating-rate loans positions them well for the current high-interest rate environment while maintaining flexibility for future rate changes.

The expansion into European markets with a €272 million facility shows geographic diversification and cross-border capabilities. The consistent growth in loan origination volume for six consecutive quarters indicates strong execution capability and market demand. With over $16 billion in committed capital since 2017, Invesco's real estate credit platform has established a significant market presence, potentially benefiting from the current banking sector dislocation.

Real Estate Market Analyst

The loan portfolio's composition reflects strategic positioning in high-demand sectors. The industrial properties in key infill markets capitalize on e-commerce growth and supply chain restructuring. The multifamily focus in major metropolitan areas like Washington D.C., Dallas and San Mateo targets stable markets with strong demographic fundamentals. The self-storage investments across multiple states diversify geographic exposure while tapping into a traditionally recession-resistant sector.

The emphasis on Class-A properties and strategic locations near transportation hubs suggests a quality-focused lending approach that could better weather market volatility. The mix of acquisition, refinancing and lease-up loans indicates flexibility in meeting diverse borrower needs while maintaining risk management standards.

DALLAS, Oct. 29, 2024 /PRNewswire/ -- Invesco Real Estate, a global leader in the real estate investment management business, announced today that it has completed a strong quarter for loan originations, closing $958 million of loan commitments across 11 floating rate senior loans in North America and one whole loan facility in Europe. In the aggregate, Invesco Real Estate originated five loans secured by industrial properties, five loans secured by multifamily properties and two cross-collateralized loans secured by self-storage properties. These transactions increase Invesco Real Estate's total loan commitments in North America to 24 loans totaling $1.7 billion in committed capital year to quarter.

Since launching a dedicated real estate credit platform in 2017, Invesco Real Estate has committed over $16.0 billion in capital across more than 209 transactions in North America. In the third quarter, Invesco's originations represented a 126% quarter-over-quarter increase in investment activity and the firm has now increased loan origination volume sequentially for six consecutive quarters.

"As we close on $1.7 billion in loans this year, we reaffirm our commitment to real estate credit as a sector with lasting growth potential," said Bert Crouch, Head of North America for Invesco Real Estate. "This milestone highlights both the strength of the foundation we have built over the past four decades and the deep borrower relationships we have fostered, enabling us to continue driving growth and delivering value."

"We are confident in the strong sourcing and lending foundations of the Invesco Real Estate platform and are excited about the continuous growth of our debt portfolio," said Charlie Rose, Global Head of Debt for Invesco Real Estate. "As market sentiments continue to improve, we remain confident that our credit platform is well-positioned to benefit from the current banking dislocation, easing inflation, lower interest rates and the opportunity for gap financing."

In Europe, Invesco Real Estate recently closed on a €272.0 million ($303.4 million) whole loan facility for the refinance of an existing facility secured against a portfolio of three prime logistics centers in Barcelona, Paris, and Bristol. This loan was backed by capital from North America.

In addition, Invesco Real Estate closed on the following loans in North America:

• $128.0 million floating-rate senior loans for the acquisition of a 5-property portfolio, spanning 645,000 square feet of highly functional industrial assets located in key infill markets of Atlanta, GA, Baltimore, MD, and Raleigh, NC.
• $101.0 million floating-rate senior loan for the refinancing of a 2014-vintage, Class-A high-rise multifamily property located in a submarket of Washington, D.C. The 400-unit property features 5,170 square feet of retail space and is proximate to Union Market and the Metrorail.
• $83.5 million floating-rate senior loan for the acquisition and lease-up of an industrial outdoor storage portfolio consisting of eleven assets totaling 94.3 acres located across six states throughout the United States.
• $55.5 million floating-rate senior loan for the acquisition and mark-to-market of a 2022-vintage, Class-A industrial property totaling 339,214 square feet located in Henderson, NV. The loan was made to a multi-repeat institutional borrower and is located less than 8 miles from the Harry Reid International airport, and access to over 77 million people within a one-day drive.
• $50.8 million floating-rate senior loan secured by a newly built, Class-A mid-rise apartment community totaling 341 units located in Houston, TX. The property is proximate to downtown Houston and the broader metro area via I-45 and I-10.
• $47.9 million floating-rate senior loan secured by a 3-property portfolio of industrial assets totaling 645,00 square feet in strong infill location in Louisville, KY, High Point, NC, and Raleigh, NC.
• $44.0 million floating-rate senior loan for the refinancing of a mid-rise apartment community spanning 352 units and 33,726 square feet of retail space located in Dallas, TX. The Class-A property is part of an 80-acre master planned community with connections to Dallas's central business district and the broader area via I-35 and 366. 
• $42.4 million floating-rate senior loan for the acquisition and lease-up of a five-property self-storage portfolio located in TX, OH, SC, and FL.
• $41.8 million floating-rate senior loan for the refinancing of a Class-A, low-rise apartment community spanning 264 units located in Riverview, FL. The property is strategically located in one of the nationally recognized top multifamily markets for rent growth.
• $11.3 million, for the acquisition and lease-up of a three-property self-storage portfolio located across NC, FL, and WA.
• $48.5 million floating-rate senior loan for the cash-in refinance of a recently renovated, 146-unit garden multifamily community in San Mateo, CA.

This includes all loans for the third quarter.

About Invesco Real Estate
Invesco Real Estate is a global real estate investment management business with $86.4 billion in real estate assets under management, 607 employees and 21 regional offices across the U.S., Europe and Asia as of June 30, 2024. Invesco Real Estate invests across the risk return spectrum, from core to opportunistic; in equity and debt; listed and direct; locally and globally. Invesco Real Estate is a business name of Invesco Advisers, Inc., an indirect, wholly owned subsidiary of Invesco Ltd.

About Invesco Ltd.
Invesco Ltd. is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive, and alternative investment capabilities. With offices in more than 20 countries, Invesco managed $1.8 trillion in assets on behalf of clients worldwide as of September 30, 2024. For more information, visit www.invesco.com.

Contact: Beverly Khoo | 332-323-8029 | beverly.khoo@invesco.com

 

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SOURCE Invesco Ltd.

FAQ

How much did Invesco Real Estate (IVZ) close in loan commitments in Q3 2024?

Invesco Real Estate closed $958 million in loan commitments across 11 floating rate senior loans in North America and one whole loan facility in Europe during Q3 2024.

What is the total value of Invesco Real Estate's (IVZ) loan commitments in North America for 2024?

Invesco Real Estate's total loan commitments in North America reached $1.7 billion across 24 loans year-to-date through Q3 2024.

What was Invesco Real Estate's (IVZ) largest loan commitment in Q3 2024?

The largest loan commitment was $128.0 million for a 5-property industrial portfolio spanning 645,000 square feet in Atlanta, GA, Baltimore, MD, and Raleigh, NC.

What types of properties did Invesco Real Estate (IVZ) finance in Q3 2024?

Invesco Real Estate financed industrial properties, multifamily properties, and self-storage properties through their loan commitments.