The Kings Cross Property Trust (the Fund) was established to purchase three strata lots, all leased to Fitness First Australia Pty Limited and located on levels 7, 8 and 9 at 1-7 Bayswater Rd, Kings Cross, NSW (the Property).
The purpose of pursuing a commercial property investment now is so that the Trust can acquire the Property at a time when the Trust is forecast to deliver a strong steady running yield in addition to investors in the Trust being able to benefit from any improvement in the property market as the impact of the global financial crisis reduces.
Key features of the Fund include:
- Distributions paid monthly, forecast to commence at 10% p.a.;
- Annual rent reviews forecast to increase investor returns by 0.5% p.a.;
- Long term lease of 11 years remaining plus 2 5 year options;
- Non-recourse debt borrowing; and
- An initial term of 7 years.
Key features of the Property include:
- Located in Kings Cross, 1.6kms east of the Sydney GPO and situated on the corner of two major arterial roads, Darlinghurst Road and Bayswater Road with a rear boundary to Pennys Lane;
- Purchase price of $3,600 per square metre with the market for small strata space in Kings Cross at $6,000‑$10,000 per square metre; and
- 2,543m2 lettable area.
Although currently leased to a gym, the space was originally built as commercial office space and can be efficiently converted back into this use or other uses (subject to any development approval that may be required). The floors feature excellent natural light, pleasant views and would sub-divide easily due to the compact side core configuration.
The Offer was made to wholesale, sophisticated and professional investors as those terms are defined in the Corporations Act. Minimum subscriptions were $100,000 unless approved by the Trustee. The Offer closed fully subscribed on 31 October 2011.
Should you have any queries in respect of the Fund, please email us at [email protected] or alternatively call us on (02) 8277 0000 to discuss further.