The property owned by the Ravenhall Office Trust (the Trust) in north-west Melbourne has been sold for just over $13 million.
Trilogy Funds co-founder and Managing Director Philip Ryan said the successful sale of the Trust’s property, located at 271-279 Robinsons Road, Ravenhall, Victoria (the property), was good news for investors in the Trust as they had received strong yield during the term of the Trust and a capital gain on its sale.
“During the seven and a half years the Trust held the property, it paid investors monthly distributions equivalent to 8.00% p.a. net of fees. Taking into consideration the sale price, the estimated Internal Rate of Return (IRR) delivered by the Trust for investors is expected to be 11.00% p.a. The IRR represents the total achieved rate of return for investment,” Mr Ryan said.
“The sale demonstrates Trilogy Funds’ investment strategy for the Trust, which was to select and acquire a property that provided investors with access to competitive monthly income and the opportunity for capital growth over the long term.
“The sale price was achieved due to the strong current demand for Melbourne metropolitan office assets, particularly in major growth areas, as well as the property being less than 15 years old and having a history of tenants of good covenant on long leases.”
The property is located within the Orbital Business Park and contains 3,124 square metres of floor area on a 8,291 square metre site with parking for 236 vehicles. Fresh fruit and vegetable business Costa Group occupy about 80% as its headquarters and Royal District Nursing rent the balance.
The agents for the sale were Quinn Reynolds’ Marcus Quinn and Lincoln Reynolds with Savills’ Julian Heatherich, Benson Zhou and Nick Garoni.
Settlement of the property sale occurred on 28 February 2022. Final distributions are expected to be made to investors in the Trust in the next several months.
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This article has been prepared by Trilogy Funds Management Limited (Trilogy Funds) ABN 59 080 383 679 AFSL 261425 as issuer of units in the Ravenhall Office Trust (Trust) ARSN 600 756 769. This Trust is closed for new investment. This advice is general advice only and does not consider your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances and we recommend that you seek personal financial product advice on your objectives, financial situation or needs before making any investment decision. You should understand the risks and seek personal advice from a licensed financial adviser before making an investment decision. The Trust is not a bank deposit and Trilogy Funds does not guarantee its performance. Past performance is not a reliable indicator of future performance.