Trilogy & Sumner Capital Offer 7% pa on Pymble Office Trust29 January 2021
Triology Funds Management in conjunction wtih Sumner Capital are offering wholesale investors a long-term investment, competitive income and an opportunity for capital growth from a sought-after property asset class in a prime location.
The Group have acquired 3 Bridge Street Pymble, a fully leased 2,626sqm building, fully leased to UGL Pty Ltd, a wholly owned subsidiary of ASX-listed CIMIC Limited.
The current lease to UGL expires on 30 June 2025 and has 1 x 5 year option that can be exercised by the tenant.
The asset is situated on a large 2,964 sqm site with the opportunity to expand the gross floor area to over 10,000 sqm. Trilogy & Sumner intend to take advantage of this opportunity by applying to local council for development approval during the life of the Trust.
The Groups are seeking to raise $10.1M for the investment via an 6 year unlisted wholesale unit trust offering with an expected distribution of 7% per annum.
|Responsible Entity||Trilogy Funds Management Limited|
ACN 080 383 679 AFSL 261425
|Fund Manager||Trilogy Funds Management and Sumner|
|Fund Size Target||$10.1m|
|Fund Open||January 2021|
|Fund Raising Close||TBC|
|Fund Term||6 years|
|Target Return||7% distribution yield|
|Target Assets||3 Bridge Street, Pymble|
We provide the following information as general advice and not specific advice for any particular investor.
- The Manager(s) are well established with a strong track record
- The Fund has identified a seed assets which can be reviewed in further detail.
- The asset is leased to a wholly owned subsidiary of an ASX listed tenant providing support to the lease income
- The Trustee is not yet identified
- The commercial office market in Pymble is weak. There is a reasonably high level of vacancy as the precinct is not as accessible or has the same level of amenity as other markets (ie Macquarie Park).
- Trilogy have not stated in the Fund Flyer, their total return expectations.
Our view is that Triology will raise sufficient capital for the fund, however capital growth will be limited.