Trilogy Funds is committed to acting in the best interest of all unit holders. In December 2016 we instructed our agents, Jones Lang LaSalle & Fitzroys to commence an extensive sales and marketing program to sell the single property asset held by the Trilogy Melbourne Office Syndicate Cheltenham, located at 294 Bay Road, Cheltenham.
The building went under contract on 4 July 2017. At the time Trilogy Funds was contractually bound by a confidentiality clause that prevented us from disclosing the purchase price. However, following the agreement of the purchaser, an article appeared on 17 July 2017 in the Australian Financial Review in which the purchaser and purchase price were reported. This information is now in the public domain.
Therefore, Trilogy Funds can confirm that the sale price of the asset is $27.325 million.
Throughout the term of the Trust, unit holders have benefitted from a net return of 8.75%p.a., paid monthly and should continue to do so up until settlement of the sales contract in late November 2017. Following settlement of the contract, Trilogy Funds will distribute the net proceeds to unit holders in proportion to their unit holdings. It is currently anticipated that the final indicative unit value will be approximately $1.00 per unit.
The decision to sell the property and wind up the Trust has been made in the best interests of unit holders and has considered a number of factors. These include:
- The strong interest for the property at this point in time from potential purchasers and in particular, investors from overseas
- The appreciation of the property value, allowing absorption of the up-front acquisition costs, including stamp duty.
- iSelect has not been prepared to commit to pursuing any expansion plans.
- The weighted average lease term is reducing which may have a negative effect on the property’s value and ultimately the unit value. There is no certainty that iSelect would renew their lease at the end of the term.
- The possibility of additional capital expenditure being required at the end of the lease term which may also dilute investor’s returns and/or unit values.
If you have any queries about this update, please call Trilogy Funds on 1800 230 099 or send an email to firstname.lastname@example.org.