2015 DIVERSIFIED PROPERTY TRUST
This is an Invitation to apply for Units in the 2015 Diversified Property Trust (Trust), whose primary purpose is to purchase and hold the Property for the purpose of deriving rental income.
Investment Highlights
- A targeted average cash return of at least 9% per annum;
- A targeted Internal Rate of Return of at least 10% per annum;
- The purchase prices are below the Property’s replacement costs;
- 7.5 year investment term;
- Lester Group will maintain an investment of at least $2 million;
- Simple unit trust structure suitable for qualifying superannuation funds;
- Non-recourse debt, conservatively geared;
- Lester Group will manage all aspects of the Property and Trust; and
- The Invitation is to Sophisticated and Professionalinvestors only.
The Property
The Trust will consist of:
- An industrial property located at Ingleburn, 48kms south west of the Sydney CBD, leased for a further 5.2 years plus three further options totalling 11 years;
- An industrial property located at Wetherill Park, 35kms due west of the Sydney CBD, leased for a further 3.4 years plus a further 10 year option; and
- Other income producing property likely to generate an average return of at least 9% income per annum and an internal rate of return of 10% per annum or more to Unitholders.
Co-invest with the Lester Group
The Lester Group intends to maintain at least $1 million worth of Units per property held in the Trust.
The Trust and Property will be managed by Lester Property Investments Pty Ltd (Trustee), a wholly owned subsidiary of the Lester Group.The Lester Group has a profitable history of industrial and commercial property investment and development.
This diversified property trust effectively reduces investment risk by having multiple properties and tenants that contribute to the returns of the investment rather than just relying on one particular property and one particular tenant.
THE PROPERTIES
20 Williamson Road, Ingleburn, New South Wales
This property was purchased by the Trust on the 24 December 2014 for $13,200,000.
Ingleburn is located 48kms south west of the Sydney CBD and the property is within 1km from the M5 motorway, 6kms from the M7 motorway and 1.3kms from the Ingleburn (commuter) train station. It has a frontage to and good access from Williamson Road, which is an important thoroughfare within the Ingleburn industrial area.
The property consists of:
- land area of 25,420 sqm, zoned General Industrial 4(a) & IN1 pursuant to the Campbelltown City Council planning scheme;
- 5,500sqm of vacant, undeveloped land (included within the 25,420sqm mentioned above).
- 10,327sqm warehouse, constructed in 1995 and extended in 2002 and includes 23 gantry and swing gantry cranes; and
- 1,237sqm of office accommodation and amenities built in 1995 and split over two levels.
The property is leased to Forgacs-Broens Pty Ltd (Broens).
Broens is a private company specialising in the design and manufacture of special purpose machines, automation, composite tooling equipment and precision components machining.They manufacture and offer quality accredited, highly complex and technologically advanced engineering products, and supply Australian and international manufacturers in the automotive, aerospace, rail, marine, defence, mining and other sectors.
The title includes 5,500sqm of vacant, undeveloped land which is also leased to Broens.
159-163 Newton Road, Wetherill Park, New South Wales
Wetherill Park is the largest industrial precinct in Sydney’s West with excellent access to the M4 and M7 Motorways. It is 35kms due west of the Sydney CBD and 10kms due west of the Parramatta CBD.
The Property consists of:
- land area of 20,300sqm, zoned General Industrial IN1 pursuant to the Fairfield City Council’s Local Environmental Plan 2013;
- 10,904sqm warehouse, constructed in 1990; and
- 1,755sqm of office accommodation and amenities built in 1990 and split over two levels.
The property is leased to Wellen Pty Ltd, a private company trading under the name of Austcor, who are a leading manufacturer of corrugated cardboard packaging.
ADDITIONAL PROPERTIES
The Trustee may propose to acquire additional properties into the Trust if it makes sense to do so.
The primary purpose is to derive rental income from the properties, notwithstanding the possibility of further development of their rent generation potential.
The Trustee will target properties with relatively high land value component of the purchase price and are expected to deliver an average cash return of at least 9% per annum and 10% internal rate of return per annum to Unitholders.
If additional properties are acquired into the Trust, further equity capital will be raised pursuant to this Memorandum or a subsequent and updated information memorandum.Existing Unitholders will be given priority to subscribe for additional Units, but there is no obligation to do so.
The Lester Group intends to maintain an investment of $1 million per property.
Additional debt is likely to be obtained for the purposes of settling additional properties.The level of debt will be dependent upon the additional property’s WALE and tenant profile but the overall LVR of the combined Properties of the Trust will be considered conservative.
For detailed information on this investment opportunity please proceed to the Crowdfundup 'Information Memorandum' panel of this project