Revesco (USA) Properties, LP, a focused, nimble and responsive boutique real estate investment and management firm with offices in Denver and Vancouver, has successfully launched Revesco Properties Trust, a U.S. dollar denominated open ended mutual fund trust.
The long-term goal of the REIT is to acquire $1 billion of core-plus, value-add, distressed debt, and development assets. These investments will predominantly include open-air retail shopping centers and mixed-use properties, with a lesser focus on distressed debt/preferred equity real estate opportunities and development projects. All targeted acquisitions will be focused on strong and growing trade areas with dynamic and diversified economies.
Revesco believes the impact of e-commerce, COVID-19, and revised space utilization of retailers will allow the REIT to acquire and develop well located properties at attractive valuations. By employing moderate leverage (70% LTV or less) the REIT will seek to generate positive free cash flow, which will be distributed to investors on a quarterly basis, targeting a total average annual return of 10% to 14%.
“This investment vehicle marks a new and exciting chapter for Revesco,” said Rhys Duggan, president and CEO of Revesco Properties. “The REIT will enable us to move quickly to capitalize on more opportunities, which provide stable income generation with upside for our investors and will strengthen our brand in the marketplace.”
Coinciding with the initial closing, the REIT has made its first purchase of a 37,668-square-foot mixed-use commercial property in Bozeman, Mont., and provided a first lien loan to the owner of development lands in Parker, Colo. The Trust is also in later stage due diligence around the acquisition of two open-air shopping centers, one in Fort Collins, and one in Flagstaff, Ariz.
Revesco’s team has successfully invested in a diverse commercial real estate portfolio since 1990 and will continue to co-invest in each Trust asset. Investors in the REIT will benefit from partnering with Revesco through leveraging their diverse real estate experience, industry relationships and market credibility established over the last 30+ years.
