MEDIA RELEASE
Leading Australian fund manager Trilogy Funds took its first steps into the large-format retail and convenience retail asset classes with the purchase of a $220 million portfolio of property income funds.
The strategic acquisition bolstered Trilogy Funds’ overall portfolio of funds under management to more than $1.4 billion across its unlisted property, real estate credit, and diversified income funds.
Trilogy Funds’ acquisitions included the management rights in four and co-investment stakes in three property trusts, which were all previously managed by various entities affiliated with Eildon Capital Group.
The acquired assets are mainly large A-grade shopping centres strategically located in key growth corridors and are typically anchored by very large national or international tenants such as Coles.
Trilogy Funds Executive Director Henry Elgood said the strategic acquisition enabled Trilogy Funds to diversify its overall portfolio into an asset class with solid fundamentals, strong growth potential and increasing investor demand.
“Large-format and convenience retail have proved to be resilient and defensive assets and historically less volatile relative to other sectors, given the predominantly non-discretionary nature of their underlying tenant cashflows,” Mr Elgood said.
“The sector is continuing to see strong tailwinds, with a combination of factors such as rapid population growth, a shift to convenient, quick-access shopping, and healthy rental growth across the asset class. These assets have been constructed under a develop-to-own model in high-density and strategic locations with the aim to provide both capital upside to investors undertaking this development whilst securing tenants with strong covenants within a centre anchored by a major retailer like Coles. ”
Mr Elgood said Trilogy Funds also saw potential for further tenant-led developments in the large-format retail and convenience sectors.
“Part of Trilogy’s success lies in the ability to identify high quality assets offering favourable yields, as well as assets that offer tenant-led expansion prospects. In these subsectors we typically see anchor tenants lead the expansion process, undertaking research and identifying locations that are attractive for future development.”
Following completion of the transaction, property industry veteran Laurence Parisi who recently joined Trilogy Funds from Eildon will oversee the portfolio and asset management of these assets in addition to the existing direct industrial property platform existing within Trilogy.
This latest deal follows a busy year of property acquisitions for Trilogy Funds. The fund manager recently secured a $29 million dual warehouse property in Brendale, one of Queensland’s premier industrial precincts, and expects to settle the purchase of a 3.76-hectare tilt-panel dual warehouse adjacent to the Port of Geelong in Victoria, in coming weeks.
Both assets will be added to the Trilogy Industrial Property Trust, now growing to over $280 million.
Trilogy Funds Manager – Property Funds Laurence Parisi said “we are optimistic about equity opportunities in industrial, convenience retail and large-format retail asset classes over the next 12 months and we have several compelling acquisition opportunities currently under review.”
“There continues to be underlying demand from our investor base for commercial property opportunities across the industrial and retail sectors, with a particular focus on assets with strong tenant-led development opportunities.
“Trilogy is focused on identifying assets being offered at attractive capitalisation rates, both on-market and via our relationship network, creating a window of opportunity to expand the overall portfolio.”
This media release is issued by Trilogy Funds Management Limited ABN 59 080 383 679 AFSL 261425 (Trilogy Funds) as responsible entity for the Trilogy Industrial Property Trust ARSN 623 096 944. Application for investment can only be made on the application form accompanying the Product Disclosure Statement (PDS) dated 11 September 2023 and by considering the Target Market Determination (TMD) dated 11 September 2023 for the Trilogy Industrial Property Trust ARSN 623 096 944 available at www.trilogyfunds.com.au. The PDS and the TMD contain full details of the terms and conditions of investment and should be read in full, particularly the risk section, prior to lodging any application or making a further investment. All investments, including those with Trilogy Funds, involve risk which can lead to no or lower than expected returns, or a loss of part or all of your capital. Trilogy Funds is licensed to provide only general financial product advice about its products and therefore recommends you seek personal advice on the suitability of this investment to your objectives, financial situation and needs from a licensed financial adviser. Investments with Trilogy Funds are not bank deposits and are not government guaranteed. Past performance is not a reliable indicator of future performance.
