The PREDEX Structure
PREDEX is designed to provide an institutional-quality real estate investment to investors.
PREDEX provides access to private core real estate through the convenience of an interval fund. Please browse through the topics below to find out more about investing in PREDEX.
PREDEX seeks consistent income and long-term capital appreciation by investing in a portfolio of flagship U.S. core property funds managed by leading institutional real estate sponsors. Our underlying funds own interests in more than 2,600 properties valued at more than $180 billion.
Why can’t PREDEX be a pure index fund?
PREDEX cannot be a pure NFI-ODCE Index fund because to do so, it would have to own all of the member funds weighted by their net asset values—an impossible task due to the uneven timing of capital calls and quarterly liquidity. PREDEX seeks to represent the characteristics of the NFI-ODCE Index.
Interval Funds and Redemptions
As an interval fund, PREDEX offers quarterly share repurchases for no less than 5% and no more than 25% of the Fund’s total shares outstanding. Share repurchases are offered at net asset value (NAV).
All of an investor’s tendered shares will be repurchased if the combined total shares tendered by all investors is less than the repurchase offer amount. If total shareholder requests exceed the repurchase offer amount, PREDEX will repurchase shares on a pro rata basis. There is no guarantee that an investor will be able to sell all shares in a repurchase offer. Quarterly share redemption is available throughout the life of the fund.
Daily NAV Pricing
Like open-end mutual funds, PREDEX provides transparency through daily pricing at net asset value (NAV). This is different from publicly traded real estate securities, which are priced based on daily trading activity. It is believed that appraisal NAV pricing may contribute to less volatility of PREDEX shares.
PREDEX offers a low-cost, passive investment strategy, which means that management fees may be lower than those of other investment options. The annual asset management fee is 0.55%. For the fiscal year ended April 30, 2019, the Fund’s total expense ratio before reimbursement was 1.10%, 1.20% and 1.32% per annum of the average daily net assets of Class I, Class T and Class W, respectively. The Adviser and the Fund have entered into an Expense Limitation Agreement under which the Adviser has agreed contractually to waive its fees and to pay or absorb the ordinary expenses of the Fund until at least August 31, 2020 to the extent that they exceed 1.10%, 1.35% and 1.35% per annum for Class I, Class T and Class W, respectively.
Minimum Initial Investment
The minimum initial investment is $1,000,000 for Class I shares. However, investment advisors may aggregate client accounts for the purpose of meeting the investment minimum. The Advisor may also waive the minimum investment at their discretion.
The minimum initial investment is $2,500 for Class T and Class W shares.
Underlying Fund Sponsors
PREDEX invests in the flagship U.S. core property funds managed by leading institutional real estate sponsors including:
|AEW Capital Management|
American Realty Advisors
Barings Real Estate
Blackrock Real Estate
|Deutsche Bank / RREEF|
Invesco Real Estate
LaSalle Investment Management
Principal Real Estate Investors
Prudential Real Estate Investors
Sentinel Fund Advisors
UBS Realty Investors
USAA Real Estate Company
PREDEX Service Providers
Custodians: BNY Mellon and UMB Bank
Auditor: RSM US LLP
Administrator / Transfer Agent: Ultimus Fund Solutions
Distributor: Northern Lights Distributors