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Invesco offers fee cuts and incentives for ICRE investors amid redemptions
Invesco Core Real Estate-USA has a $2.2B redemption queue, and management is also facilitating a tender offer to buy shares at 95% of net asset value.
Invesco is rolling out investor incentives for its Invesco Core Real Estate-USA fund, known as ICRE, as the open ended vehicle faces an elevated redemption queue, according to an investor letter reviewed by Bloomberg and first reported by Bisnow.
The incentives include a 20% cut to management fees for investors who do not submit redemption requests, plus a one year fee waiver for investors who add $10M to the fund, which primarily serves institutional clients.
ICRE investors will also be able to cash out through a tender offer, with the letter pledging to buy shares at 95% of net asset value. Invesco said it is adding up to $150M to the fund to reinforce alignment.
Bisnow reports that redemptions have represented 5.3% of net asset value since 2022, above the historical average, and that ICRE’s total returns were up 3.5% through the end of June. The fund’s redemption pressure reflects broader challenges for nontraded real estate products, with examples cited of redemption misses at Germany’s DWS and a redemption freeze by Starwood Capital Group.