MEDIA RELEASE
Trilogy Funds Management Limited (Trilogy Funds), as responsible entity of the Trilogy Industrial Property Trust (Trust), has today settled the sale of 113-117 Bedford Street, Gillman in South Australia for $20 million.
The 1.5-hectare multi-warehouse site, located 11.5 kilometres northwest of the Adelaide CBD, has been a long-term asset of the Trilogy Industrial Property Trust since its November 2018 acquisition.
The site is comprised of two warehouses. ‘Warehouse A’ consists of approximately 2,450 sqm of net lettable area (NLA), and is leased to Plasdene Glass Pak. The larger of the two warehouses, ‘Warehouse B’ is comprised of approximately 6,400 sqm of NLA, and is leased to Tyremax.
Trilogy Funds purchased the site for $14 million in November 2018. The sale price represents a 43% increase on the initial purchase price and is a 13% premium to the latest external valuation as at 30 June 2023.
Laurence Parisi, Manager – Property Funds, discussed Trilogy Funds’ active management of the Trilogy Industrial Property Trust.
“We are constantly reviewing the portfolio in search of opportunities to add value for investors,” Mr Parisi said.
“The sale of the Gillman property is demonstrative of Trilogy Funds capitalising on strong market conditions in the industrial property sector. We will now turn our attention to accretive reinvestment into new opportunities.”
The sale comes off the back of the expected acquisition of a 3.8-hectare multi-warehouse property in North Geelong, leased to iconic Australian surf brand, Quiksilver.
Mr Parisi noted the way in which recent activity has bolstered the Trilogy Industrial Property Trust.
“The North Geelong acquisition will improve portfolio metrics by introducing a globally recognised tenant in a well-connected location, to the Trust.
“Our acquisition earlier in the year, at Brendale, Queensland, also added an industry-leading tenant in Modern Star, to the portfolio. Modern Star has been a leader in the educational supplies business for over 60 years, and a tenant at the site for more than two decades.
“Both the Brendale and North Geelong assets were chosen under strict yield requirements. Our acquisitions this year, along with the Gillman sale, will contribute to improving the Trust’s weighted average lease expiry and yield. They’ll also bolster our presence in premium industrial precincts.” Mr Parisi concluded.
As at 30 September, the weighted average lease expiry of the Trust was 5.54 years, with 100% occupancy. The Trust is comprised of 15 assets valued at $279.5 million.
The Trilogy Industrial Property Trust has returned 8.99% p.a. since its January 2018 inception, with a current income yield of 7.33% p.a.
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 30 September 2022 and by considering the Target Market Determination (TMD) dated 30 September 2022 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.
