In the key Northern Growth Corridor between Brisbane and the Sunshine coast
8.80% p.a. INCOME PAID MONTHLY
Opportunity and Returns
WHY PEOPLE CHOOSE PEAK EQUITIES
Communication and Information
We are pleased to present our most recent investment opportunity:
•A premium-quality building located in a significant growth corridor in SE Queensland.
•A strong and secure income stream underpinned by AAA government and semi-government tenants;
•Genuine prospects for capital growth over a holding period of 5-7 years;
Peak Equities’ current acquisition strategy focuses on assets in areas of strong population and economic growth. We believe that capital city housing and rental prices will continue to drive people outside city limits and that residential population growth leads directly to increased demand for retail and commercial assets.
Caboolture is located mid-way between central Brisbane and the Sunshine Coast to the north. Travel time to cover the 50 km from Brisbane is less than 40 minutes on the M1 Highway, and the city is serviced by a direct rail link from Brisbane. Over recent years, the northern suburbs have extended to a distance of around 30km from Brisbane CBD.
The town of Caboolture is the administrative centre of the Moreton Bay Regional Council, representing a population of greater than 425,000, or 20% of the total Queensland population outside metropolitan Brisbane. The property at 33 King Street is the dominant commercial asset in Caboolture, located in the heart of the Civic Centre. It houses the regional Water Authority as principal tenant and essential State Government departments.
The purchase price of this property enables us to conservatively accumulate significant cash reserves and at the same time provide for monthly cash distributions to Unitholders at the rate of 8.8% per annum.
We welcome your interest in this asset and invite you to contact any member of our team if you would like to discuss any aspect of this Information Memorandum.
Trusting that this acquisition marks the commencement of another year of financial success and prosperity for our investors.
Chairman and Managing Director
LOCATION HIGHLIGHTS -
FINANCIAL SUMMARY &
APPLICATION FOR UNITS
1. The Trust - Peak Equities Pty Ltd is Trustee of the KING STREET UNIT TRUST, established on
15 January 2018. The principal activity of the Trust will be the acquisition of the investment property at 33 King St, Caboolture, Queensland.
2. Due Diligence - Peak Equities Pty Ltd (the Trustee) is engaged in its detailed Due Diligence investigation and analysis of the property. Subject to the satisfactory outcome of that process, an unconditional contract is expected to be signed in the second half of February, with settlement scheduled for 31st March 2018.
3. Purchase Price - The purchase price has been agreed at $16,600,000, subject to our satisfactory Due Diligence enquiries.
4. Term of the Syndicate – It is expected that the property will be held for a period of between
5 and 7 years. The Trustee has discretion to sell the property at any time, if it considers that it is in the interest of Unitholders to do so.
5. Liquidity - The Unitholders Deed governing the operation of the Trust provides investors with a guaranteed right to exit the investment at full market value at any time after the 5th anniversary of the establishment of the Trust.
6. Forecast Distribution Rate - The Trustee proposes to make monthly cash income distributions at the rate of 8.80% per annum to Investors.
7. Funding – Peak Equities has received indications of interest from 3 banks to provide mortgage funding on favourable terms - non-recourse lending to 60% of the contract price. The Trustee expects to raise approximately
$8.8 million from investors.
8. Applications for Units - Each Investor may apply for between 200 and 800 Ordinary Units of $1,000 each in the capital of the Trust (Investment Value $200,000 to $800,000). Applications may only be made on the Application Form attached to this Information Memorandum.
9. Offer Period - The offer will remain open until full subscription has been achieved. The Trustee has complete discretion as to the number of Units (if any) to be allocated to each Applicant.
10.20% Deposit Payable - Investors must lodge a deposit equal to 20% of the value of their total investment accompanying their Application.
Deposits funds should be paid directly into the solicitor’s trust account. (see Application Form for details).
11.Balance Payment - The remaining 80% subscription price will be payable during March 2018, within 7 days of written request from the Trustee. Unit certificates will be issued by the Trustee upon receipt of the balance payment by each investor.
12.Offer Limited to Wholesale Investors - The Offer is available exclusively to Sophisticated Investors as defined in the Corporations Act.
13.Trust Documents - Prior to confirming their investment, intending Unitholders will be provided with a copy of the Trust Deed and the Unitholders’ Deed of the KING STREET UNIT TRUST, and will be required to sign a Deed of Accession, agreeing to be bound by the terms of those documents.
Key Attributes – 33 King Street
Sitting in the heart of the Caboolture business precinct and servicing the region’s need for government accommodation, 33 King Street Caboolture is a campus-style 5,317sqm building with 82 on site secure basement car parks. The asset is underpinned by leases to Unitywater and the Queensland State Government, providing secure government covenants on long-term agreements.
THE INVESTMENT OFFERS
•5,317sqm of office accommodation over 5 levels
•4.1 Year (approx.) WALE by income
•Net income forecast to average 11.5% per annum over the life of the Syndicate
•Blue chip covenants in Unitywater and Queensland State Government occupying circa 80% of the building (by income)
•500 metres to Caboolture Train station, allowing ease of access for workers
•49 kilometres north of Brisbane CBD, 60 kilometres south of Sunshine Coast
•2.5 Star NABERS Rating
33 King Street
The building was constructed in 1995 and has been maintained in excellent order by the current owner, being the local Council. The Unitywater tenancy, covering 3 of the 5 floors was substantially upgraded in 2014 at the commencement of their 10-year lease term.
33 King Street’s characteristics have underpinned its success as a destination for high-calibre government tenants. The building’s unique floor plate offers excellent natural light from all areas and the property provides a campus-style layout with the ground floor opening out into an open forecourt used for a variety of community events.
Occupancy at Acquisition:
Location Highlights – Caboolture
Caboolture is located approximately 50 kilometres North of the Brisbane CBD and 60km South of the Sunshine Coast and is an urban centre within the Moreton Bay Region. The region forms the economic epicentre of the Northern Growth Corridor of South East Queensland with Caboolture set to be buoyed by significant population and employment growth.
Caboolture Shopping Centre
Caboolture Train Station
Centenary Lakes Park
Morayfield Shopping Centre
Queensland University of Technology Caboolture Campus