MDC Trilogy Wholesale Yield Fund I

A unique investment opportunity for wholesale investors

  • Minimum investment. $250,000
  • Net distribution rate. 10.00%PA1

1September 2024 net distribution rate annualised. Past performance is not a reliable indicator of future performance. Rates are variable.

A sector ripe for disruption. Income backed by Australian property management

The MDC Trilogy Wholesale Yield Fund I (Fund) offers wholesale investors the opportunity to gain economic exposure to the performance of a significant portfolio of Australian property management assets (predominantly rent rolls).

Murray Darling Capital (MDC) and Trilogy Funds invite wholesale investors to be one of the first to explore investing in this new type of wholesale fund.

Leveraging the skills and experience of MDC and Trilogy Funds, the Fund is designed to gain economic exposure to the performance of a significant portfolio of property management assets, held by MDC Trilogy Group.

MDC Trilogy Group intends to initially target strategic investments in New South Wales, Queensland and Victoria with an emphasis on attractively priced assets located in areas with favourable demographics, strong rental appreciation potential and high demand from renters and investors.

MDC and Trilogy Funds have developed a consistent and scalable process to deliver competitive yield from acquisition and management of property management assets.

Leading ASX-listed real estate business, The Agency, has been engaged to manage the properties acquired through the Fund.

Why property management assets?

The Australian residential property sector has been one of the strongest performing asset classes available over the last 5 years.

Leading corporate advisory firm, MDC and Trilogy Funds, regarded as one of Australia’s leading property-based fund managers, have designed a new opportunity to gain economic exposure to this market and the performance of property management assets, or rent rolls.

We believe that property management assets generally offer greater tenant diversity and generate higher and less volatile returns than direct residential property investment, which fluctuates with interest rates.

The industry is also ripe for disruption and consolidation:

  • Many real estate agents are either focused on the sales side of their businesses or do not always have the scale of rent roll or staff to drive optimal value from the portfolio
  • Advances in technology are facilitating improved processes and efficiencies that will help increase the ROI of large property management portfolios
  • Real estate agents are finding it increasingly difficult to build their own rent rolls through acquisition or organically due to an inability to access funding.

‘Favourable 3.75-Star’ rating from SQM Research2

“The Investment Manager and its property management partner, The Agency,
have established a significant level of expertise in the key activities required to operate the Fund successfully.”

-SQM Research

2 The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.

Investment overview3

Investment strategy
The Fund will subscribe for Loan Notes issued by MDC Trilogy Holdings I Pty Ltd (MDC Trilogy Holdings). MDC Trilogy Holdings will in turn use that money to acquire property management assets through subsidiaries, predominantly consisting of residential management assets (e.g., tenancy management agreements, rent rolls) (Assets) in Australia.

Targeted net distribution rate

10.00%4 P.A. paid quarterly

Minimum investment

$250,000

Minimum investment period

12 months

Withdrawals

Quarterly (Subject to the terms of IM)

Investment Manager5

The Trustee for MDC Trilogy Investment Management I Trust

Trustee & Custodian

Specialised Investment and Lending Corporation Pty Ltd (SILC)is the Trustee for the Fund and will be responsible for holding the title to the Fund’s assets.

3 Subject to the terms of the Information Memorandum. This summary has been provided for illustrative purposes only. All terms and conditions contained herein are subject to the MDC Trilogy Wholesale Yield Fund I’s (Fund) Information Memorandum which should be referred to for further details. This summary is not an offer or solicitation to purchase interests in the Fund. Such interests are only offered to investors who meet the definition of a wholesale investor as defined in the Corporations Act 2001, pursuant to the terms of the Information Memorandum, which should be reviewed carefully prior to investing.

4Targeted net distribution rate (net of fees, costs and taxes) paid quarterly. This rate is not guaranteed and is subject to change.

5Appointment subject to finalisation of agreement.

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