Qualitas Real Estate Income Fund (ASX:QRI) raised AU$218 million through its oversubscribed entitlement offer, shortfall offer, and wholesale placement, according to a Wednesday filing with the Australian bourse.

The entitlement offer and shortfall offer were oversubscribed, achieving the maximum potential capital raise of around AU$151 million at AU$1.60 per unit, the filing said.

About 94.4 million new units will be issued, with 37.6 million units allocated under the entitlement offer and 56.8 million units under the shortfall offer, the filing added.

Additionally, the Fund secured binding commitments for around AU$66.9 million through a wholesale placement, issuing roughly 41.8 million new units at the same price.

The capital raised will be used for commercial real estate credit investments, and the increased size of the trust is expected to reduce operating costs per unit and enhance trading liquidity.

Qualitas Real Estate Income Fund's shares slipped almost 1% in recent Wednesday trade.