The Trilogy Industrial Property Trust (Trust) has been established to build a portfolio of industrial properties located in key regional and metropolitan industrial precincts with the aim to provide investors stable and regular income and the opportunity for some capital growth over the long term.
To achieve this, Trilogy Funds expects to purchase a variety of industrial properties. Forming the initial portfolio of the Trust, we have identified two quality industrial properties in Paget, Mackay, an industrial region in Central Queensland. Once these acquisitions are completed it is intended that the Trust will seek other opportunities in Australia’s industrial precincts with the aim of developing a diversified industrial property trust.
||Open-ended, unlisted property trust
|Duration of the Trust
||Open-ended, with withdrawal offers intended once every four years. See PDS for details.
||Calculated daily, paid monthly
||$20,000 (or less at Trilogy Funds’ discretion)
||Minimum initial raise $7,476,000
Maximum initial raise $11,555,000
|Expected gearing range
||Target gearing range is a Loan to Valuation Ratio of below 50%.
|Offer closing date
||As soon as fully subscribed or at any time after the Minimum Subscription is reached, as Trilogy Funds determines.
||Anticipated to be 1 March 2018, dependent on the Minimum Subscription being reached. The date may change as Trilogy Funds determines.
*The forecast return is based on the initial property portfolio and is only for the period from settlement date to 30 June 2018, and the further 12 month period ending 30 June 2019 and is net of management fees and costs and inclusive of GST (less RITCs). The basis of forecast calculations and key assumptions are detailed in the PDS. There is no guarantee the forecast returns may be achieved, or any particular rate of return.
Make an informed decision
Trilogy Funds believes 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.
Asset summary – Initial Property Portfolio
||33-41 Diesel Drive, Paget, Mackay QLD
||11-21 Crichtons Road, Paget, Mackay QLD
||Modern, high-specification industrial building with 16-metre clearance and two gantry cranes.
||Modern, high clearance industrial facility with attached two-story offices.
|Net lettable area
||2,150 square metres
||2,254 square metres
||9,813 square metres
||6,513 square metres
||Industry – High Impact
||Industry – High Impact
||6.20 years as at 31 December 2017
||4.58 years as at 31 December 2017
||Independent Mining Services QLD Pty Ltd
||Alfagomma Australia Pty Ltd
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.