How to Benefit from Time in the Market | Trilogy Funds Australia

Trilogy investors benefit from time in the market

For those invested in the property market, waiting for the property clock to tick over and see the market boom may take what seems like forever, yet the rewards for patient investors prove to be very positive.

This is certainly the case for investors in the Ravenhall Office Trust, one of Trilogy’s high performing property trusts, located in Ravenhall, Victoria.

In October last year, Investors saw their Net Tangible Asset (NTA) per unit appreciate by approximately 21% to $1.21 (inclusive of fees and exclusive of GST). This is great news for Investors and is the result of a revaluation of the Ravenhall Office Trust’s asset, an exercise indicating an increase in property value to $12 million (ex GST).

Coinciding with the re-valuation, Trilogy entered a new interest only commercial bill facility with the Commonwealth Bank of Australia who financed the mortgage over the property. This $4,385,500 facility is fully drawn at a fixed interest rate of 5.21% per annum until 31 October 2020. As the property had shown a significant increase in value, Trilogy was able to secure this finance facility at a Loan-to-Valuation Ratio (LVR) of 37%, reducing the LVR from 49% as at property settlement. This lower LVR means that Investors benefit from reduced gearing risk without compromising the value of their monthly distributions.

Indeed, this isn’t the only good news story for Investors in one of Trilogy’s managed investments.

Recently, Trilogy completed a final return of capital to Investors in the Trilogy Melbourne Office Syndicate – Cheltenham, following the sale of its single asset in November 2017. This property trust was initially forecast with a term of five years following property settlement. Whilst Investors were enjoying a return equivalent to 8.75% per annum, paid monthly, the Trilogy property team continued to monitor the market. After three years, the market ticked over and began indicating demand for the property was strong. Keen to capitalise on the promising conditions, our property team secured the sale of the property at $27.375 million – a significant increase, particularly in a shorter investment period from its purchase of $24 million in 2013.

The result of this transaction meant that not only did Investors benefit from the successful achievement of the Trust’s forecast distributions of 8.75% per annum for the investment period, but, they also received their initial capital investment upon wind up of the Trust.

Trilogy Managing Director, Philip Ryan, said that this outcome is akin to Trilogy’s philosophy for all our trusts.

“Trilogy aims to deliver Investors a stable and sustainable investment income, distributed monthly, along with potential capital stability and growth. This philosophy, combined with an active management approach, is engrained throughout all of our trusts as evidenced by our consistent performance”, says Ryan.

If you’re looking for your next property investment opportunity, start a conversation with our Investor Relations team. Enquire today by email at investorrelations@trilogyfunds.com.au or call 1800 230 099.

This article has been prepared by Trilogy Funds Management Limited (Trilogy) ABN 59 080 383 679 AFSL 261425 as Responsible Entity of the Ravenhall Office Trust and Trilogy Melbourne Office Syndicate – Cheltenham (managed investment schemes, Trusts) which are both closed for investment. Trilogy sometimes offers investment opportunities that are similar to the Trusts mentioned within this article. Product Disclosure Statements for these opportunities will be available at www.trilogyfunds.com.au or by contacting us. These managed investment schemes are not bank deposits and Trilogy does not guarantee their 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.