Cannon Hill Office Trust

The Cannon Hill Office Trust is an unlisted property syndicate investing in a quality office building with three levels of commercial office accommodation in one of Brisbane's fast growing suburban commercial precincts.

  • Status Open
  • Unit Price $1.00
  • Minimum Investment $25,000
  • Forecast Net Rate %pa 7.25*

* Forecast only and for the periods ending 30 June 2018 and 2019. Basis of forecast calculations and key assumptions are detailed further in the PDS. Forecasts of future distributions are not a guarantee that they will be achieved and are not indicative of future performance. Net rates are net of fees and management costs.

The Cannon Hill Office Trust is an unlisted property syndicate established to purchase a quality office building with commercial office accommodation over three levels and a total of 81 secured and unsecured car parks. The asset is situated in one of Brisbane’s fastest growing suburban commercial precincts, the award winning Southgate Corporate Park, just 6.7 radial kilometres south east of the Brisbane CBD. Completed in 2012, 38 Southgate Avenue is the newest building in the park.

Investment Overview

Fund Cannon Hill Office Trust
Investment type Single asset, closed-end, unitised, unlisted property trust
Location Cannon Hill, Queensland
Distributions Forecast 7.25%pa* paid monthly in arrears following settlement of the Property.
Unit price $1.00
Minimum investment $25,000 AUD, or less at Trilogy Funds’ discretion.
Investment term The initial term of the Trust is an intended fixed-term 5 years from the settlement of the property, with potential for extensions.  See the PDS for further information.
Offer opened 22 May 2017
Offer closes Once fully subscribed
Purchase price  $22,650,000
Offer equity raise $14.7 million
Loan to valuation ratio Between 47.50% and 55.00%, see the PDS for details.

*Forecast only and for the periods ending 30 June 2018 and 2019. Basis of forecast calculations and key assumptions are detailed further in the PDS. Forecasts of future distributions are not a guarantee that they will be achieved and are not indicative of future performance. Net rates are net of fees and management costs.

 Asset summary

Address 38 Southgate Avenue, Cannon Hill QLD
Southgate Corporate Park The building is located in Southgate Corporate Park, Cannon Hill, one of the fastest growing ‘gateway precincts’ in Brisbane. The precinct’s strong investment fundamentals include tenant amenity and public transport infrastructure in addition to proximity to arterial roads, rail, the Port of Brisbane, and the Brisbane airport.
Built 2012
Net lettable area 3,502 sqm
Site area 2,052 sqm with a 55m frontage to Southgate Avenue
Car parking 81 total (61 secure basement bays and 20 on-grade bays)
WALE 4.44 years by income (as at 3 April 2017)
Occupancy 100% leased
Tenants by area Compass Group (Australia) Pty Ltd (43%), Orica Australia Ltd (37%), GM Holden Ltd (20%)
NABERS 5 star energy rating

About the property

38 Southgate Avenue provides 3,502 square metres of quality commercial office accommodation over three levels.  A central core configuration with full height glass throughout provides outstanding natural light and adds to the aesthetic appearance of the asset.  The building holds a NABERS Energy rating of 5 Stars and with construction completed in 2012, it is the newest building in the Southgate Corporate Park.

The asset has a 53.8 metre frontage along Southgate Avenue and provides tenants with substantial parking with 61 secured basement bays and 20 unsecured on-grade bays, giving a total ratio of 1.42 car spaces per square metre of net lettable area.

Location

The asset is situated at 38 Southgate Avenue, Cannon Hill, in Southgate Corporate Park.  A modern suburban commercial precinct, part of Brisbane’s fast growing ‘Gateway precinct’, Southgate Corporate Park is only 6.7 radial kilometres to the Brisbane CBD and provides a modern office park environment.

Anchored by a long list of blue chip tenants, including NAB, the Queensland State Government, Optus, NBN Co. and Honeywell, as well as the anchor tenants of the proposed asset Compass Group, Orica Australia, and GM Holden, the area has seen substantial investment activity from a range of purchasers locally and nationally, further signifying its reputation as an established office destination.

Purpose designed to cater for businesses seeking high level of convenience and connectivity, Southgate Corporate Park is located in a prominent, central location with access to Brisbane’s Gateway Arterial (providing access to both Sunshine and Gold Coasts), Brisbane Airport, Port of Brisbane, Brisbane CBD, and is one of the city’s only suburban office precincts with direct rail access.

The precinct’s strong investment fundamentals also include tenant amenity.  Within walking distance of the property is a range of retailers, child care centres, a medical centre convenience stores along with major shopping centres.

Completed in 2012, 38 Southgate Avenue is the newest building in the park and boasts a 5 star NABERS Energy rating.

Make an informed decision

Trilogy Funds believes everyone should be equipped with the right knowledge when it comes to making an investment decision. You should be aware that all investments in unlisted property funds carry risk. As the Trust intends to invest in commercial property it will the market, property and leading risks associated with investing in property. As a geared investment the Trust also carries associated financial and leverage risks. 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 and understand the risks of investing.

 

The forecast return is only for the period from settlement date to 30 June 2018 and the further 12 month period ending 30 June 2019. The basis of forecast calculations and key assumptions will be detailed in the PDS. There is no guarantee the forecast returns may be achieved, or any particular rate of return.

Trilogy Funds Management Limited ACN 080 383 679 AFSL 261425 (Trilogy Funds) is the responsible entity of the Cannon Hill Office Trust (Trust) (ARSN 618 676 074) and is the issuer of units in the Trust. Trilogy Funds has issued a Product Disclosure Statement (PDS) for the Trust dated 22 May 2017 which is available at www.trilogyfunds.com.au/office or by contacting us. Applications will only be accepted on the current application form that accompanies the PDS. Investment in the Trust is subject to risk including loss of income and principal invested. Trilogy Funds does not guarantee the performance of the Trust. Trilogy Funds and its associates will receive fees in relation to an investment in the Trust as disclosed in the PDS. As the Trust will invest in commercial property it will carry the market and property risks associated with investing in property. Also, as the Trust will have borrowings, it will also carry the associated financial and leverage risks. Risks can impact returns and it is important that you obtain and read the PDS and understand the risks of investing. Please note that any information provided by Trilogy Funds is general information only and does not take into account your objectives, financial situation or particular needs. You should consider whether this information is appropriate for you and consult your financial or other professional adviser before investing.

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