Tryb
Leased Hospitality Property Under $5,500,000
Strategy
Settle Property | Hold for 5 Years | Sell for Capital Gain
Description
For those interested in being a founding member of a Commercial Property unit trust designed to hold a single Commercial Property (Likely Retail Shop) in Queensland's South East between Noosa and Tweed Heads (no further than 10mins west from any beachside location suburb). Primary goal to take advantage of capital growth through contracted rental increases as per the lease. Target property will have a minimum 10 year net lease with minimum 3% rental increases and ideally with at least one option. Target Loan to value ratio (LVR) will be such that the property income will be sufficient to service the mortgage and likely expenses as well as provide limited recourse to unit holders limiting the banks security to the property itself (No Personal Guarantees). This unit trust will be established with the view to sell the asset within 5 years so that unit holders may realise any capital growth. Holding term may be extended with unanimous decision of the unit holders.
Proposed Trust Investment Mandate
Maximum $6m Purchase Price (Inc Costs)
Maximum 20 Unit Holders
Minimum 150,000 Per Unit Holder
Total Capital Required $3,000,000
Loan: 50% LVR Non-Recourse
Target Minimum Yield: 6.5%
Trust Investment Term: 5 Years
Existing Lease: Min 10 Years
Excess Cash at Bank: Distributed Bi-Annually
Trust Rules
5 Year Investment Term
This Unit Trust is designed to purchase property as per the property description and hold it for a period of 5 years. At completion of 5 years the property will be sold visa the sale method.
Sale Method: Valuation then Auction
At end of the Investment term, the property will be valued and then listed for sale with a local agent to be selected by the Trustee. The sale method will be by Auction.
Minimum Sale Value
At the end of the term, the sale value accepted by the trustee must be at least market value in order to be accepted. Any amount exceeding market value must be accepted by the trustee.
Professional Trustee
The Trust's accountant will be appointed as the Trustee for the Trust who must act under the rules of the Trust and where rules rail must take a vote from the unit holders where majority rules.
Fees as per the standard Tryb Fee Schedule
Fees as per the standard Tryb Fee Schedule available here: https://www.tryb.au/fees