Metrics Credit Partners suspended trading in three ASX-listed funds Monday as audited net tangible asset values fell: 12.16% at Metrics Real Estate Multi-Strategy Fund, 10.08% at Metrics Income Opportunities Trust and 1.99% at Metrics Master Income Trust.
Auditor KPMG differed on inputs and probability weightings used in the preliminary reports. Metrics said the audited results gave greater weight to downside scenarios and included higher provisions for potential loan losses across all three funds. The Real Estate Multi-Strategy Fund’s markdown was mostly due to lower fair values for unlisted commercial real estate equity investments; its value per unit was revised to A$2.22 from A$2.53. The fund last traded at A$1.68.
The revisions come amid heightened scrutiny of Australia’s private-credit industry after property developer Bathla entered administration owing A$3 billion to about 40 lenders. The corporate regulator last week warned of unrealistic valuations and poor governance, saying firms that failed to meet its standards should prepare for enforcement action. Metrics said it had no exposure to Bathla.
