trilogyfunds.com.au/industrial

Transcription

1 Trilogy Industrial Property Trust an industrial property trust that aims to provide investors with stable and regular income, and the opportunity for long-term capital growth. trilogyfunds.com.au/industrial

2 new property Bedford Street, Gillman, South Australia The Trust has identified an investment opportunity in Gillman, South Australia. This brand-new Property is comprised of two continuous industrial units with a combined gross lettable area of 8,844 square metres, plus a total of 45 car parking spaces. Each tenancy provides warehousing with 10 metre clearance. The Property also features loading docks, cantilevered awnings, multiple roller shutter doors and extensive hardstand pavements. Currently under construction, the Property is due for completion and settlement in late November As the Property is new, it is unlikely it will require any capital expenditure in the short to medium term. location The Property is located in Gillman, South Australia. Gillman is situated within Adelaide s prime north western industrial market approximately 15km from the Central Business District. The Property provides excellent connectivity and is proximate to the Port River Expressway and the North South Corridor. South Australia is no longer known solely as an origin of quality wine exports and automotive assembly and production. The State is experiencing exponential growth in recent times spurred through decisions to increase its competitiveness in real estate and through the growth of industry. Unemployment is currently the lowest level recorded for the last five years with blue collar sectors the catalyst for jobs growth. Further, building approvals for residential dwellings have increased significantly from negative growth in previous years. Property type Tenants Weighted average lease expiry Independent valuation Modern warehouse with office facility. The Property will be 100% leased to Tyremax Pty Ltd and the vendor, Frasers Property AHL Ltd and Commercial and Industrial Property (by rental support deed) years from practical completion The Property was independently valued as at 20 June 2018 on the basis of a current site value of $3,000,000 and an as-if-complete value of $14,000,000.

3 Trilogy Industrial Property Trust Expected forecast distribution rate 8.25%pa* The Trilogy Industrial Property Trust (Trust) is designed for investors seeking a long-term investment, stable income and an opportunity for long-term capital growth from one of the most sought-after property asset classes in Following the first opportunity to invest in January this year, the Trust acquired two industrial property assets in Mackay, Queensland. Both Properties are 100% leased to quality tenants who support the mining industry in the Bowen Basin region. Trilogy has now identified an opportunity to diversify the portfolio and intends to acquire another Property. You re invited to find out more! Investment overview The Trilogy Industrial Property Trust (Trust) is designed to build a diverse portfolio of industrial properties located in key Australian regional and metropolitan precincts. The Trust targets industrial properties that have the potential to provide long-term cashflows to investors and could offer the opportunity of value add. Its aim is to provide investors with stable and regular income, the opportunity for capital growth over the long term, and withdrawal offers intended every four years. Investment type Exit opportunities Minimum investment Unit issue price Open-ended, unlisted property trust Intended every four years from the Trust s initial settlement date. $20, (or less at Trilogy s discretion) $1.00 per Unit Offer amount Up to $7,800, Target gearing Loan-to-Valuation Ratio (LVR) of below 50%. However, the Trust may borrow over 50% LVR from time-to-time in order to make further acquisitions, or fund tenant-led expansion. * Forecast distribution rate (net of fees, costs, and less taxes) for the period from 1 December 2018 to 30 June Forecast returns are not guaranteed and are based on the future property portfolio and assumptions which will be detailed in the PDS.

4 Existing Portfolio The Existing Portfolio comprises two industrial Properties located in Mackay, Queensland. About the properties crichtons road A single industrial complex with an attached two-storey office, built in 2011 as a design and construct project for the tenant. diesel drive A modern, high specification industrial building with 16-metre clearance and two gantry cranes, built in 2014 as a design and construct project for the tenant. Location Mackay, QLD Location Mackay, QLD Net lettable area 2,254 square metres Net lettable area 2,150 square metres Site area 6,513 square metres Site area 9,813 square metres Zoning Industry High Impact Zoning Industry High Impact Tenant Alfagomma Australia Pty Ltd Tenant Independent Mining Services QLD Pty Ltd Lease term 5 years, expires 31 July 2022 Lease term 10 years, expires 18 March 2021 Tenant-led expansion project Trilogy is negotiating terms to construct approximately 900 square metres of additional gross lettable area for the Diesel Drive Property. Construction will include additional workshop and warehousing space with cranes, awning, and approximately 469 further square metres of concrete hardstand. On practical completion, IMS will enter into a new 12 year lease. The new lease should reposition the IMS lease more in line with market rates. While this is likely to result in a reduction in the current rental rate per square metre, investors should benefit from the longer term income stream and the likelihood that a valuer would apply a lower capitalisation rate which should result in a higher capital value.

5 Express your interest Trilogy invites you to express your interest and reserve an allocation of Units in the Trilogy Industrial Property Trust trilogyfunds.com.au/industrial Features of the Trust established portfolio The Trust s Existing Portfolio is located in Mackay, Queensland. It currently comprises two high-specification industrial properties with tenants that provide support to the Bowen Basin coal mines. professional management Our team has over 40 years experience in Property and Property-based investments. Investors in the Trust benefit from our expertise in funds management, Property management, and Property acquisitions. monthly distributions Each month the Trust pays investors a distribution proportionate to the number of Units they hold. All of Trilogy s investment offerings have consistently paid distributions since their inception. growth locations The Proposed Acquisition is located in South Australia. Demand for property in the State has increased in recent periods due to stabilising vacancy rates, higher yield than properties on the eastern seaboard, and Stamp Duty exemptions on commercial property. Mackay, home to the Trust s existing portfolio, is showing signs of economic improvement given the region s proximity to mines in the Bowen Basin. potential for value-add The Trust s strategy includes targeting properties that demonstrate the opportunity for value-add. This is done through lease negotiation, sourcing new quality tenants, or tenant-led expansion. diversified tenants In the long-term, the Trust intends to diversify the property portfolio with tenants that provide services to varied industries. This diversification aims to reduce any impact from loss of income from the tenants. The Proposed Acquisition features Tyremax Pty Ltd (Tyremax) as the anchor tenant. Tyremax are a prominent wholesale tyre distributor who have been operating since The Existing Portfolio features tenants who provide heavy steel fabrication, machinery maintenance, and spare parts supply services predominantly to the mines in the Bowen Basin. potential for long-term capital growth Since acquiring the Existing Portfolio, Trilogy has negotiated an expansion to the Property located on Diesel Drive. The expansion will be funded through bank finance. This expansion aims to add further value to the portfolio in the long-term and improves the longevity of the distribution yield paid to Investors. make an informed decision All investments in unlisted property trusts carry risk. As the Trust invests in industrial property it carries the market, property, and leasing risks associated with investing in property and the industrial property sector. Additionally, there are risks relating to the structure of the Trust and the proposed offer, under the PDS currently being prepared, including that there is no guarantee that Trilogy will be available to make withdrawal offers. As a geared investment, the Trust carries associated financial and leverage risks. Further, Trilogy is still negotiating with its financier in respect to the debt arrangements for the Trust. Risks can have an impact on distributions and capital returns over the term of the Trust. It is important that you read the Product Disclosure Statement (PDS) when it becomes available and understand the risks of investing.

6 About Trilogy With varied backgrounds in property development, financial services, property management, law, and marketing, our focus is on creating income-generating solutions, while keeping risk awareness at front of mind. Trilogy commenced in 2004 following a merger of interests associated with Rodger Bacon, John Barry, and Philip Ryan. We can trace our origins back to 1998 when a law firm, of which Philip Ryan was a partner, began managing income and property funds on behalf of investors. Our property team has over 40 years experience in property and propertybased investments. We utilise our extensive understanding of finance and fundraising to invest in commercial, industrial, childcare and healthcare property around Australia. Express your interest Start a conversation with us today. Call or info@trilogyfunds.com.au IMPORTANT: This brochure has been prepared by Trilogy Funds Management Limited (Trilogy) ABN AFSL as responsible entity and issuer of units for the Trilogy Industrial Property Trust (Trust) ARSN Trilogy has issued a Product Disclosure Statement for the Trust dated 1 November 2018 which is available at or by contacting us. Applications will only be accepted on the current application form that accompanies the PDS. You should obtain a copy, understand the risks, and seek personal advice from a licensed Financial Adviser before investing. Investment in the Trust is subject to terms and conditions, and risks which are disclosed in the PDS. These risks include the risk of losing income or principal invested. The Trust is not a bank deposit and Trilogy does not guarantee its performance. Trilogy provides only general financial product advice on its own products and does not consider your objectives, financial situation, or needs in providing such advice. trilogyfunds.com.au/industrial