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!
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!