Benlee is in the capital raising phase for its $15.25 million Trust #5, which comprises two modern warehouse estates in the Brisbane industrial areas of Heathwood and Pinkenba, and a third property at Eastern Creek in NSW with a total valuation of $32 million for the three properties.
John Dalley, Benlee’s founder and management director, says all the properties are leased to long term tenants, with regular rent reviews scheduled at the end of each year. Commercial property, he said, was at a good point in the cycle with current valuations making it a buyers’ market.
“The idea is to deliver a reliable income to investors and a capital gain to investors when we sell the properties” says Dalley, who has a strong track record of property investment, including unit trusts, going back several years.
“The return to investors in the trust will be about 10.5% in the first year and that will increase each year with the annual rent reviews included in each of the leases, there are also significant tax benefits through tax deferred income resulting from the annual depreciation deductions for each property.”
Dalley says the minimum investment in the trust is $100,000 and that the trust is close to being fully subscribed.
The trusts are structured as seven year trusts, but that date can be extended or shortened depending on a unit holder vote.
“If it’s appropriate to sell something before then we would consider that, and likewise if after seven years the majority of Unit Holders wish to hold the property longer then we have certain rules that allow for the period to be extended on certain vote criteria,” says Dalley.
“If investors need to, or want to get out of the trust at any point, we are also in a position to help them find buyers for their units so there is some opportunity for liquidity, as has occurred on a few occasions over the last three years with earlier similar trusts managed by Benlee.”
A key advantage with the Benlee Trust is John Dalley’s personal involvement.
“I’m the trust manager and as I’m investing personally in the trust, I have a personal interest to make sure that it all goes well and more importantly I have a lot of people in there who I know well, or have been with me in other similar investments and are relying on me to do the best possible job,” he said.
“So investors can know that it is being handled by an experienced person with some skin in the game”.
“It’s also very transparent. You can see exactly what you’re investing in with this trust. It’s three properties with a small group of tenants as opposed to some of the larger trusts, you’re in a whole mix of things and it’s not 100 percent clear what you are investing in.”
Benlee Property Trust will be participating at the Wholesale Investor Capital Showcase Sydney 2012.
Wholesale Investor is Australia's leading private investment platform showcasing Private, Pre-IPO and Life Sciences ASX Listed Opportunities to over 9200 High Net Worth, Professional and International investors.
Steve Torso, Managing Director, Wholesale Investor
P: 1300 597 595