Open Air Industrial & Logistics Estate.

Oversubscribed.

An opportunity to invest in a significantly under-rented, land-rich, open-air industrial and logistics estate.

The Trust is targeting base case annual distributions averaging 8% to 9%, which is underpinned by resilient income streams and a target base case IRR of 15% to 17% over 5 to 7 years.

We are targeting to raise ~$26.9m from investors to acquire the usable 23 ha site for $35.5m, representing a steep 24.5% discount to market value of the underlying land.

Investment Highlights:

• Base case target 15% to 17% IRR and average 8% to 9% p.a. distribution yield for investors over the investment term

• High embedded rental reversion with the asset 60% under rented

• Initial conservative LVR of 40% with potential to increase LVR as active leasing strategy is executed and return capital over the  investment term

• Potential to achieve upside in market rents and enhance investor returns above base case targets

• It fits the manager's strategy of finding off-market opportunities, with attractive pricing of circa 24.5% below fair market value of the land

• Brisbane industrial land supply is severely land-constrained. Sites like this are hard to find.

• Opportunity to create material value through an active leasing strategy and cosmetic upgrade program

• Potential long-term upside from building out net lettable area

• Multiple value add and exit opportunities

• Income underpinned by strong tenant covenants

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