Canadian investment manager Middlefield Group has published the final prospectus for its Sustainable Real Estate Dividend Fund, seeking to raise up to C$75 million ($60 million).
The fund, which will be listed on the Toronto Stock Exchange, will invest in the dividend paying securities of entities involved in sustainable real estate. This might include real estate owners such as real estate investment trusts or companies involved in sustainable property management or building materials.
An ESG screening process, considering factors such as third party ESG scoring and data, as well as direct issuer research, will be used to select investments. The expected portfolio allocation will be 50-70% weighted towards REITs and the geographical weighting will be 60% North America and 40% rest of the world.
Fund units are being offered at C$10 each and the initial public offering will close on March 30, 2022. The fund may borrow up to 25% of asset value and is targeting an annualised 5% dividend yield, paid monthly.