The Benlee Property Trust No. 11 (the Trust) was established to acquire two industrial properties:
- 25 Princes Road East, Auburn NSW (the Auburn Property); and
- 145 Archerfield Road, Richlands QLD (the Richlands Property),
(each a Property and collectively the Properties).
The properties have been acquired with the objective of deriving rental income and capital appreciation for the unit holders’ benefit and the Trust is forecast to deliver a strong yield while allowing unit holders to benefit from improvements in the property market.
The property manager is Benlee Company Pty Ltd and the trustee is One Funds Management Limited. Members of the One Investment Group provide registry, fund accounting and taxation services to the Trust.
In 2016, the Trust reached its target subscription of $16,500,00. The money raised, together with bank debt, funded the purchase of the Properties.
Key features of the Trust include:
- Distributions paid monthly;
- Annual rent reviews forecast to increase investor returns each year;
- Non-recourse debt borrowing for unit holders; and
- An initial term of 7 years.
Key features of the Properties include:
The Auburn Property
- Located 23km from the Sydney GPO and 24km from the Sydney Domestic Airport;
- 052 hectare site which sits on the fringe of Regents Park;
- A large vintage style office and warehouse facility comprising of 3 freestanding buildings.
- Gross lettable area of 10,459m2;
- Leased to a long-standing tenant, IPD Group Ltd, who has occupied the space since the building was constructed;
- In 2015, the Property underwent a building upgrade, costing approximately $1.75 million, in which the complex was substantially refurbished with a focus on fire fighting systems, office and amenity areas, and warehouse awning additions.
The Richlands Property
- Located 18km from the Brisbane GPO and 34km from the Brisbane Domestic Airport;
- Richlands, located on the Ipswich Motorway and very close to the intersection with the Centenary Motorway, is an established and well regarded industrial precinct in Brisbane.
- 26,770m2 site houses a modern office, warehouse and factory complex comprising of two freestanding buildings which are approximately ten years old.
- The 12,152m2 of gross lettable area is currently occupied by four tenants plus one vacant area to which the Vendor provided a two-year rental guarantee to the Trust.
The fund’s objective is to:
- Provide unit holders with regular rental income;
- Provide unit holders with the potential for capital growth upon disposal of the property; and
- Provide a fixed term investment with a clearly defined exit strategy.
The offer was made available to wholesale, sophisticated and professional investors as those terms are defined in the Corporations Act 2001.