Investing in Trilogy Industrial Property Trust | Trilogy Funds Australia

Invest in Trilogy Industrial Property Trust

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 2018.

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.

The Trust targets industrial properties that 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.

Product Disclosure Statement (PDS)

  • This field is for validation purposes and should be left unchanged.

^ Forecast distribution rate (net of fees, costs, and less taxes) for the period from 1 December 2018 to 30 June 2020. Forecast returns are not guaranteed and are based on the future property portfolio and assumptions which will be detailed in the PDS.

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.

Property typeOpen-ended, unlisted property trust
Exit opportunitiesIntended every four years from the Trust’s initial settlement date.
Minimum investment$20,000.00 (or less at Trilogy’s discretion)
Unit issue price$1.00 per Unit
Offer amountUp to $7,800,000.00
Target gearing rangeLoan-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.

Make an informed decision

We believe everyone should be equipped with the right knowledge when it comes to making an investment decision.

All investments in unlisted property trusts carry risk. As the Trust intends to invest in industrial property it carries the market, property, and leasing risks associated with investing in property and risks relating to the structure of the fund and the offer, including that there is no guarantee that funds will be available to make withdrawal offers.

As a geared investment, the Trust carries associated financial and leverage risks. Risks can have an impact on distribution and capital returns over the term of the Trust. It is important that you read the product disclosure statement (PDS) and understand the risks of investing.

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Investment Status open
Unit Price $1.00
Forecast distribution rate 8.25%PA

113-117 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 2018. 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 typeModern warehouse with office facility.
TenantsThe 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).
Weighted average lease expiry4.42 years from practical completion
Independent valuationThe 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.
South Australia Investment
Industrial investment
industrial trust

Existing Portfolio

AssetDiesel DriveCrichtons Road
LocationMackay QLDMackay QLD
Net lettable area2,150 square metres2,254 square metres
Site area9,813 square metres6,513 square metres
ZoningIndustry – High impactIndustry – High impact
TenantIndependent Mining Services QLD Pty LtdAlfagomma Australia Pty Ltd

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.

About the tenants

Independent Mining Services QLD Pty Ltd (IMS) lease the purpose built facility at 33-41 Diesel Drive, Paget, Qld and is a leading engineering and manufacturing company. Established in 2008, the company provides maintenance labour and equipment hire to various mines in the Bowen Basin as well as a large range of steel equipment fabrication services.

Alfagomma Australia Pty Ltd (Alfagomma) is a subsidiary of Alfagomma Group, a global manufacturer of hydraulic and industrial fluid handling systems for mining, oil and gas applications.

Alfagomma Group employs over 3550 people worldwide and most recently reported a €370 million turnover. Alfagomma Group’s strategy is to be a single source integrated system supplier to its customers which include mines in the Bowen Basin.

About the region

The initial assets of the portfolio are located in Paget, Mackay, an industrial region of Central Queensland within approximately four kilometres of the Mackay Airport and eight kilometres of the Mackay central business district.

Accommodating more than 500 registered businesses, the Paget Industrial Estate benefits from proximity to a range of amenities including railways and the Bruce Highway. The suburb is home to local, national, and international companies that provide services to mines in the Bowen Basin coalfields and other mines and agricultural businesses within the region.

Recently, Mackay has experienced improved economic performance. The region has placed itself on a growth trajectory fuelled by a diversified agricultural and mining industry base. Mackay is a major support hub for the Bowen Basin coalfields which produce high-grade coking (metallurgical) coal, distributed through the Mackay regional ports of Hay Point and Dalrymple Bay. Collectively, these two ports contribute to 7% of the total global seaborne coal exports. Regional council attributes the majority of Mackay’s gross regional product to mining, totalling $4.56 billion over the last financial year.

Signals from the region indicate it has no intention of slowing growth with the Queensland Government investing significantly to create new employment opportunities, and support new businesses in the region.

Other exports from the region include raw consumables, petroleum, ethanol, building supplies, minerals, and other goods.

Important Information

Please visit this page for important updates on the Trust as they become available.

Product Disclosure Statement (PDS)

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Application form

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Brochure

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Annual report

Download your copy of the Trilogy Industrial Property Trust Annual Financial Report as at 30 June 2018.

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