Investors seeking property-based investments in a low yield environment have strongly supported a new wholesale property investment opportunity, the Pymble Private Property Trust (Fund) with the $10.4m capital raising closing in under a week.
The Fund offers an attractive forecast net cash distribution rate of 7.00%* per annum, with an expected investment term of six years from the settlement date. The Fund has 100% ownership of the 3 Bridge Street Trust, which has settled the acquisition of a commercial property at 3 Bridge Street, Pymble NSW (“the Property”).
The Fund aims to provide wholesale investors with competitive income from the rent generated by the Property and the opportunity to increase investment returns via an asset with potential capital value development upside.
The Property consists of a three-storey office building, covering 2,626 sqm of net lettable area and is leased to engineering company UGL Pty Ltd, a 100% subsidiary of ASX-listed CIMIC Limited.
Chairman of Sumner Trilogy, John Barry, said the short time in which investors subscribed into the fund highlighted the strong demand for property-based investment options in a low-yield environment.
“There is a strong demand for property investments due to their potential for competitive yields and long-term capital growth prospects,” Mr Barry said.
“The New South Wales commercial office property sector is one of the strongest real estate markets and is in demand by multinational and domestic blue-chip tenants.
“The Fund provides an opportunity to invest in an asset that is 100% leased by a quality, long-term tenant and has potential capital value upside.
“The Property is strategically located in the prestigious northern Sydney suburb of Pymble. It has dual street frontage to the Pacific Highway and Bridge Street, is close to Pymble Town Centre and Pymble Train Station and has easy access to Sydney’s orbital road network.”
Major retailers, including Bunnings and ALDI have also recently been attracted to Pymble, both having purchased development sites on the Pacific Highway.
The location, with close proximity to transport and key social infrastructure, is expected to benefit from increased occupier demand, as more companies seek cost-effective solutions.
“We are continually seeking new opportunities to deliver property-based investment options and believe the Property at 3 Bridge Street, Pymble, with a strong tenant in a strategic location, provides a good opportunity for investors,” Mr Barry said.
“Roger Bacon and I have previously worked with Kirby Parsonage, Head of Property at Sumner, during our time at Challenger. We saw this is an opportunity to build on these relationships and combine our skillsets to benefit our investors,” he added.
*Initial forecast distribution rate (net of fees). This is limited to the period only from the Settlement Date to 30 June 2021 and for the year that follows until 30 June 2022.
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This media release has been prepared by Sumner Trilogy Investment Management. Sumner Trilogy Investment Management Pty Ltd (Investment Manager) is the Investment manager of the Fund and is a Corporate Authorised Representative (CAR No. 001286045) of Trilogy Funds Management Limited (Trilogy) ABN 59 080 383 679 AFSL 261425. Perpetual Corporate Trust Limited acts as trustee (Trustee) of the Fund. The Pymble Private Property trust is an unregistered managed investment scheme. Investors may lose part or all of their capital or there may be periods when their returns are diminished. The Fund is not a bank deposit and neither the Investment Manager, Trilogy nor the Trustee guarantee its performance.
Trilogy Funds Management Limited (Trilogy) is an Australian-owned company that offers a range of investment and financing solutions. Trilogy is one of the country’s leading fund managers of property-based investments and has been seeking income and managing investment risk on behalf of thousands of investors, for over 23 years. As one of Australia’s leading non-bank lenders, Trilogy also provides tailored finance solutions to the property and construction sectors.
Sumner was established in 2008 as a privately owned and independent real estate investment manager and advisor based in Sydney. With a strong track record in attractive risk adjusted returns, Sumner provides a highly personalised investment service to meet the requirements of sophisticated high net worth and institutional investors who require a focused manager and tailored solutions. Sumner currently manages in excess of A$250m of Australian real estate assets on behalf of local and offshore investors.