Trilogy Industrial Property Trust

An industrial property trust that aims to provide investors with stable and regular income and the opportunity for some capital growth over the long term.

  • Status Open
  • Unit Price $1.00
  • Minimum Investment $20,000
  • Forecast Net Rate %pa 8.50*

*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 and you should read and understand the assumptions before making an investment decision. There is no guarantee the forecast returns may be achieved, or any particular rate of return.

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.

Investment overview

Investment type Open-ended, unlisted property trust
Duration of the Trust Open-ended, with withdrawal offers intended once every four years. See PDS for details.
Distributions Calculated daily, paid monthly
Minimum investment $20,000 (or less at Trilogy Funds’ discretion)
Equity raise 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.
Settlement date 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

Asset                                    Property 1  Property 2
Address 33-41 Diesel Drive, Paget, Mackay QLD 11-21 Crichtons Road, Paget, Mackay QLD
Asset Modern, high-specification industrial building with 16-metre clearance and two gantry cranes. Modern, high clearance industrial facility with attached two-story offices.
Purchase price  $7,250,000 $4,000,000
Net lettable area 2,150 square metres 2,254 square metres
Site area 9,813 square metres 6,513 square metres
Zoning Industry – High Impact Industry – High Impact
WALE 6.20 years as at 31 December 2017 4.58 years as at 31 December 2017
Occupancy 100% leased 100% leased
Tenant 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.

 

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 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 Trilogy Industrial Property Trust (Trust) (ARSN 623 096 944) and is the issuer of units in the Trust. Trilogy Funds has issued a Product Disclosure Statement (PDS) for the Trust dated 17 January 2018 which is available at www.trilogyfunds.com.au/industrial 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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