Expansion Case Study:

Mackay, QLD

 
This case study is a strong example of how a tenant-driven project can represent a collaborative approach to property ownership. This project has strategically added value to Trilogy’s portfolio whilst greatly improving the operational output of the tenant.. The development cost of this project totalled over $2 million, and despite minor weather delays, it was delivered on time and within budget.

In April 2018, Trilogy Funds acquired the property at 33 – 41 Diesel Drive, Paget, Mackay QLD, to be held within the Trilogy Industrial Property Trust (‘the Trust’). This asset is located on a 9,813 square metre site, including an existing 1,800 square metre workshop, tenanted by Independent Mining Solutions (‘IMS’) QLD. Based on the low site coverage and strong tenant covenant, Trilogy and the tenant discussed opportunities to expand the site coverage to support IMS’ operational expansion.

After acquiring the asset, Trilogy agreed with the tenant to hire FKG Group to build a new workshop that would increase Paget space by 900 square metres to house the installation of ten 2-ton electric jib cranes and two 25-ton overhead Eilbeck cranes.

The new improvements also included the construction of a 300 square metre awning attached to the existing workshop – allowing IMS to load and unload freight undercover and away from possible weather disruption. The overall site developments included minor improvements, including a 470 square metre concrete hardstand to facilitate smooth operational access between workshops.

Consequently, the success of these upgrades fostered a greater relationship with the tenant, led to an extension to the lease agreement with IMS and increased rental returns across the site.

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