Roc360 REIT receives $150M investment to target renovation loans

Singapore-based investment firm Temasek has closed a $150 million investment in a fund managed by real estate lending platform Roc360, the companies announced Thursday. The capital will be allocated to an investment vehicle focused on residential transition loans used to finance home renovations.

Temasek, which manages a $324 billion investment portfolio, first partnered with Roc360 in 2023 to launch the Roc360 Real Estate Income Trust (REIT). The vehicle was designed to connect institutional investors with opportunities in the residential renovation market and expand access to capital for residential property investors.

The new funding will be directed primarily toward first-lien mortgages secured by residential investment properties originated through Roc360’s national lending platform. According to the companies, demand for residential transition credit has grown due to its real-asset collateral, short loan durations and historically resilient performance.

“As global investors continue to demand greater exposure to high-quality asset-backed credit and shift from real estate equity toward real estate debt, we have positioned ourselves favorably in the market to help our investors access this opportunity,” said Maksim Stavinsky, co-founder and CEO of Roc360.

The companies cited housing stock fundamentals as a key driver of the strategy. Roughly half of all U.S. homes were built before 1980, and unmet home repair needs total an estimated $149 billion per year, a motivating factor behind the launch of the Roc360 REIT.

Roc360 recently also closed a separate $150 million insurance-dedicated fund with an annuity and retirement services provider. Founded in New York in 2014, the company said it has originated more than $30 billion in business-purpose residential investment loans, either directly or through its affiliated brands.