Benlee Property Trust No. 5
The Benlee Property Trust No 5 (the Fund) has been established with the intention of acquiring the following three industrial properties located in Brisbane and Sydney:
- the Heathwood Property – 71 Stradbroke Street, Heathwood;
- the Pinkenba Property – Lot 3, 175 Eagle Farm Road, Pinkenba; and
- the Eastern Creek Property – 5 Wonderland Drive, Eastern Creek
(each a Property, collectively the Properties).
The rationale of pursuing an industrial 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 to the extent that the impact of the global financial crisis reduces.
Key features of the Fund include:
- Distributions paid monthly, forecast to commence at an average over 3 years of 10.94% 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:
- The improvements at 71 Stradbroke Street were constructed in 2007 and comprise two separate modern freestanding office / warehouse buildings situated on either side of a wide concrete central driveway and approximately 10,000m2 of hard stand area.
- The buildings are constructed of pre-cast concrete tilt slab panels and each has its own two level office and amenities, generous hard stand areas and six roller doors for the Carey’s building with the Symbio building serviced by two roller doors. The building site coverage is a very low 30%.
- The property is easily accessed via the Logan Motorway being a major road joining the Ipswich Motorway to the Pacific Motorway and Gateway Motorway. The property is also located within close proximity to the Centenary Highway, offering easy access north, south, east and west.
- The Logan Motorway provides access to Ipswich and western suburbs and also connects with the Gateway Motorway (M1) to the east providing direct access to Port of Brisbane and Brisbane Airport.
- There are high voltage power lines traversing the centre of this property which result in an easement in favour of Queensland Electricity Commission where the building of structures underneath is not permitted, this is the reason the site coverage is a very low 30% however the trade-off for this is that the site enjoys an exceptional amount of concrete hard stand which is very valuable for certain users.
- The improvements at 175 Eagle Farm Road, on the corner of Tingira Street, were constructed in 2007 and comprise a high quality office / warehouse with a very generous awning area of 725 m2 and a low building site coverage of 38%.
- The property is located in the fast growing Australia Trade Coast region only 4 kms from Brisbane Airport and 15 kms from the Port of Brisbane with close access north and south via the Gateway Arterial Motorway and Kingsford Smith Drive.
- The floor of the warehouse is prestressed concrete with a polished finish providing exceptional strength and cleanliness that facilitates smooth efficient use of forklifts within the warehouse. The buildings are constructed of pre-cast concrete tilt slab panel base walls with metal cladding to the upper elevations. The office area constitutes 4% of the total building area and there are seven large container height roller shutter doors.
- In the late 1960s a small part of the property was used for fertiliser manufacture and this activity has resulted in contamination of site soils in the north east corner where the fire services tank is now located. As a result, the land is listed on the Environment Management Register and has been obliged to establish and comply with a Site Management Plan, which has been done, and all necessary certificates of compliance and approval have been obtained and are available for the Trusts solicitor to satisfy himself with during the Due Diligence Period.
- The improvements at 5 Wonderland Eastern Creek were constructed in 2005 and comprise a high quality office / warehouse of 16,514 m2 with two very generous awnings totalling 1,379 m2, 7 roller shutters plus 2 levelling loading docks and parking for 160 cars. The minimum internal clearance is 9.4m, with a maximum clearance of 11.2m. The site area is 2.786 ha.
- The building is constructed with a steel portal frame supporting pre-cast concrete panels with a heavy reinforced concrete slab on ground and low pitch steel framed metal deck roof interspersed with translucent polycarbonate infill panels and foil sarking to the underside incorporating steel wire safety mesh.
- The property is located 38 kms from the Sydney GPO and is regarded as one of western Sydney’s premier industrial precincts being ideally located on the Sydney orbital motorway at the junction of the M4 and M7 Motorways. Many of Australia’s listed REITS (Real Estate Investment Trusts) also own properties in the area.
- The area has been developed since 2003, and so all the surrounding buildings are relatively new and modern. This location is clearly popular with many significant companies. Eastern Creek is now headquarters or a significant location for many major local and international companies, all of whom are located in the same street or surrounding streets of 5 Wonderland Drive.
The Fund is currently seeking to raise up to $ 15,250,000. The subscription is to be separated into two distinct stages to provide funds for each of the three proposed settlements. Stage one involved the raising of the first $7,400,000 to settle the purchases of the Heathwood Property and the Pinkenba Property. The capital raising for Stage 1 has been completed as it was fully subscribed by early May 2012. Stage two is currently in progress and will involve the raising of the balance of up to $7,850,000 to settle the purchase of the Eastern creek Property.
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. The Offer Closing Date for stage 2 is the earlier of 30 August 2012 or when this component of the offer is fully subscribed.
Should you have any interest, please email us at [email protected] or alternatively call us on (02) 8277 0000 to discuss further.