Trilogy Property Syndicates

Anyone had any experience investing with these guys? Or in Property Syndicates in general?

Trilogy has a Melbourne opportunity at the moment that I am trying to sus out for both myself and my clients (I am a Financial Planner), but really haven't had any experience with commercial property or property syndicates to date.

Seems good on paper - 8.75% net yield, 45% gearing at fixed 5 year rates, look to get out within 5 years, tenant is iSelect (relatively large, profitable company that just floated on the asx) and is locked in at 4% annual rent increase until 2021, bank guarantee of $2m on rent (about 1 year's worth of rent).

Main risks I can identify seem to be interest rates increasing over the next 5 years, which would presumably drop the value of the commercial property, iSelect going bankrupt or moving to a different site and being unable to quickly find a new tenant or buyer for the property, or simply wanting to sell the property at the 5-7 year mark and being unable to find a buyer if Southbank is not an attractive area for businesses in the future.

I have some high net worth clients in the pension phase of their super lives, so all earnings would be tax free for them, so think it may be worth allocating a portion of their growth assets to this via a self managed super fund.

Here's the link:

http://www.trilogyfunds.com.au/property-syndicates/cheltenham/

Would appreciate thoughts from anyone who knows more about and/or has experience with commercial property, property syndicates or trilogy!
 
Haha wow didn't see that, cheers mate.

Yeah, seems like iSelect aren't doing as well recently as they were before, but still seem like a relatively healthy & profitable company overall.

I don't know, I think the liquidity factor is the main concern with this for me. Trust runs for up to 7 years at the manager's discretion, so if circumstances change and the money needs to be accessed in that time, the outlook becomes pretty bleak quickly...

Might give this one a miss.
 
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