The Benlee Property Trust No 6 (the Fund) has been established with the intention of acquiring four commercial and industrial properties located in Brisbane, Queensland.
The properties are:
- 10 Brandl Street, Eight Mile Plains (the “10 Brandl St Property”);
- 36 Brandl Street, Eight Mile Plains (the “36 Brandl St Property”);
- 69 Brandl Street, Eight Mile Plains (the “69 Brandl St Property”); and
- 7 Hi-Tech Court, Eight Mile Plains (the “7 Hi-Tech Ct Property”),
(each a Property, collectively the Properties).
The Properties are located in the Brisbane Technology Park at Eight Mile Plains, which is located 16 kilometres from the Brisbane GPO and 26 kilometres from Brisbane Airport. The Properties will be held with the objective of deriving rental income and capital appreciation for the benefit of Unit Holders.
The money raised pursuant to the Information Memorandum will be used, together with bank debt, to fund the purchase of the Properties.
The rationale of pursuing an industrial and commercial property investment now is so that the Trust can acquire the Properties at a time when the Properties are forecast to deliver a strong steady running yield and investors in the Trust are able to benefit from any improvement in the property market.
Key features of the Fund include:
- Distributions paid monthly, forecast to commence at an average of 10.19% p.a*;
- Annual rent reviews forecast to increase investor returns each year;
- Non-recourse debt borrowing for investors; and
- An expected initial term of 7 years.
Key features of the Properties include:
10 Brandl Property
- The property occupies a gateway position at the Logan Road entrance to the Brisbane Technology Park. Constructed in 2001, the building is of concrete tilt panel construction and comprises fully air conditioned offices and technical areas over two levels and a high clearance warehouse to the rear. Male and female amenities and kitchenettes are provided to each office level. Male and female showers, a disabled toilet and lunch room are located on the ground floor. The property has easy access to Brandl Street by way of two concrete crossovers.
- The land in its natural form would have displayed a slight slope from the north to the south (from the back to the front) and the site has been cut and formed to provide a level building platform with the rear of the lot retained by a feature boulder wall.
36 Brandl Property
- The property sits on a 3,937 m2 parcel of land and has an 83m frontage to Brandl Street, a well presented two level office building constructed in 2001 from a combination of pre-cast concrete and a modern office façade. The building has been split into three tenancy areas, each with its own male and female amenities including shower and disabled toilet. Other features include fully ducted air conditioning, suspended ceilings and quality floor coverings.
- The land in its natural form would have displayed a slight slope from the north to the south (from the back to the front) and the site has been cut and formed to provide a level building platform with the rear of the lot and the street frontage retained by a feature boulder wall.
- Included in the $428,450 capital contingency at the date of this IM is an amount to refurbish one of the suites in this building in late 2013 when it is likely to become vacant.
69 Brandl Property
- 69 Brandl St is a slightly irregular shaped 2,612 m2 block that backs onto the M1 Pacific Motorway, providing some exposure for the property to one of the Southside’s busiest roads.
- The building is a modern, 8m high clearance warehouse facility of concrete tilt slab construction with two loading docks with awnings over. The front of the building has commercial grade office accommodation over two levels. Male and female amenities and a kitchenette are located on the first floor with a disabled toilet on the ground floor.
- Included in the $428,450 capital contingency at the date of this IM is an amount of $76,000 to install energy efficient lighting and a rainwater tank if the tenant exercises its lease renewal option by 1 July 2013 (an obligation in the current lease), the current lease expires in March 2015.
7 Hi-Tech Property
- The property is a modern two level building and high clearance warehouse of concrete slab construction. The offices feature fully ducted air conditioning, suspended ceiling, recessed fluorescent lighting, a combination of glass and plasterboard lined partitions and quality floor coverings. Male and female amenities are provided to both levels and there is a shower and disabled toilet to the ground floor.
- The warehouse has been converted by the tenant into a sterile workshop and includes a specialised vinyl flooring and ducted air conditioning. To cater for Micreo’s recent and forecast growth, the building is to be expanded by a further 162 m2 of mezzanine office with an additional 250 m2 of new manufacturing clean room to be constructed within the existing building footprint. Micreo has committed to a new ten year lease from the date of practical completion of the proposed works. The new works includes a new fit out for the tenant and the total cost of $1.1m will be fully funded by the vendor.
The target subscription being sought by the Fund is $11,250,000. As at 22 January 2013, the Offer Closing Date is scheduled to be 13 February 2013, or when the offer is fully subscribed.
Potential investors must submit their Application Form by the Offer Closing Date. The Offer Closing Date is scheduled to be the earlier of 13 February 2013 or when the offer is fully subscribed.
At the time you submit your Application Form you must also submit 11% of the total amount you wish to invest in the Trust (i.e. the “First Call”). Provided the Trustee accepts your Application Form and permits you to become a Unit Holder in the Trust, the remaining 89% of the total amount you wish to invest in the Trust will be called upon at a later date as follows (i.e. the “Second Call”) with a minimum of 7 days’ notice to be provided to you.
The Second Call will be made no sooner than three to four weeks after the Offer Closing Date and no sooner than 15 March 2013. The Trustee reserves the right to move the date of the Second Call forward or backwards in its absolute discretion.
The Offer is open to wholesale, sophisticated and professional investors only as those terms are defined in the Corporations Act. Minimum subscriptions are $100,000 unless approved by the Trustee.
Should you have any interest, please email us at [email protected] or alternatively call us on (02) 8277 0000 to discuss further.
*This average percentage return is based on various assumptions as disclosed in the Information Memorandum which need to be understood before any investor considers making an investment in the Fund.