NEWS

QI DIVERSIFIED INCOME TRUST NO 1 ADDS INDUSTRIAL ASSETS TO FUND

Property funds management company acquires prominent adjoining industrial assets 100% leased to one of Australia’s largest home builders.

Perth-based property funds management company, Quadrant Investments, has successfully added a large industrial complex to its diversified property fund, the QI Diversified Income Trust No 1, after closing its second round of equity raising oversubscribed in early October.

The assets, located in Perth’s eastern industrial precinct of Bassendean, occupy a prime corner position on Dyer Road and McDonald Crescent and were sold via an on-market campaign managed by Axia Corporate Property’s Investment Sales Director, Wayne Mitsikas, for $10,650,000.

Boasting a total combined land area of over 1.4 hectares, the adjoining assets were offered fully leased to The Maker, a wholly owned subsidiary of the West Australian headquartered building giant ABN Group, and were the subject of strong competition during the marketing campaign according to Mr Mitsikas.

According to Mr Mitsikas, the calibre of the tenant, one of Australia’s largest building companies, was only one of the hugely attractive characteristics to prospective purchasers.

“While the ABN Group is a highly recognised national name and comprises an integrated group that operates 20 business lines, including the occupant of the buildings, The Maker, the huge landholding of over 1.4 hectares and three street frontages also underpinned interest,” commented Mr Mitsikas.

Axia Corporate Property’s high-profile campaign generated substantial enquiry resulting in multiple offers, with Quadrant Investments’ diversified fund coming out on top after a two-stage EOI process.

Quadrant Investment’s Managing Director Phil Fogliani said the latest acquisition to the QI Diversified Income Trust No 1 provided the perfect compliment to its foundation asset, a two-level office building located in the Midland CBD, wholly leased to the WA Government, which it purchased in May this year.

“The two new acquisitions located just 8km north of the Perth CBD, with their substantial land content and strong lease covenant to one of Australia’s largest home builders by market share, add significantly to the portfolio within the diversified fund, which now has a total portfolio size of $17.9 million, with a weighted average lease expiry of over five years,” Mr Fogliani added.

The QI Diversified Income Trust No 1 is targeting returns to investors at 7.0% p.a., paid monthly, and will provide its investors with a diversified portfolio of income streams. It intends to add additional properties across various sectors and locations through future acquisitions, with an aim to achieve a combined value of up to $40 million once fully invested.

“Quadrant Investments’ acquisition principles guide our strategy for the high-quality assets we target and choose to add to the fund,” explained Mr Fogliani, adding, “Part of that assessment looks for opportunities or factors that will potentially deliver future capital growth in addition to income growth for investors. 12 Dyer Road and 25 McDonald Crescent, Bassendean certainly fits that profile.”

Mr Fogliani noted the reasons for acquiring the property were compelling on its obvious fundamentals as a rare large landholding in the industrial sector of the market, but perhaps one of the most important and valuable reasons was the strong prospects for future rental growth.

With the equity raising closing oversubscribed, Mr Fogliani noted that they were actively looking to secure the next asset for the fund.

“A number of the existing investors in the fund have already indicated their wish to increase their investment and we are also taking registrations of interest from new investors, including those who missed out, for our planned third raising,” stated Mr Fogliani.

The acquisition and the establishment of the QI Diversified Income Trust No. 1 adds to Quadrant Investments’ growing portfolio of assets under management, which has grown to over $70 million in just over three years.

 

Key highlights & Further Information:

About 12 Dyer Road & 25 McDonald Crescent, Bassendean

  • Total building area of 7,908 square metres including office, showroom and warehouse.
  • Combined land area of 14,365 square metres (1.4365 hectares).
  • Three extensive frontages to Dyer Road, McDonald Crescent and May Holman Drive.
  • Leased to The Maker, a 100% owned subsidiary of the ABN Group until mid-2026.
  • Sale process managed by Axia Corporate Property’s Director of Investment Sales, Wayne Mitsikas, via an Offers to Purchase campaign which closed on 4 August 2021.

About Quadrant Investments

  • Quadrant Investments (QI) is an established boutique property funds management business based in Subiaco, Western Australia.
  • QI has assembled key management personnel with over 75 years’ experience to execute QI’s investment philosophy and asset selection criteria.
  • QI directors: Phil Fogliani (Managing Director) and Alex Gregg (Director)
  • QI provides opportunities for investors to partner with the QI directors in compelling property investment opportunities.
  • The directors and their related entities are active investor participants of every fund.
  • QI holds and operates under its Australian Financial Services Licence (No. 493066).
  • QI currently has funds under management (FUM) of just over $70 million across over close to 30,000sqm.

QI is co-owned and backed by one of Australia’s oldest private

QI’s key personnel and contacts are:

Phillip Fogliani                   Managing Director                    +61 (0) 408 900 587

Alex Gregg                          Director                                      +61 (0) 417 914 631

About QI Diversified Income Trust No 1

  • Wholesale Unit Trust structure established by Quadrant Investments, the holder of an Australian Financial Services Licence.
  • Initial Trust term of seven years.
  • The Trust’s initial FY2022 forecast income distribution of 00% p.a. (pre-tax, after costs) is paid monthly to investors.
  • Targeting an average income distribution of 7.00% p.a. to investors over 7-year term of Trust.
  • Intention to acquire additional properties, with the fully invested Trust having a combined end value of up to $40 million.
  • Total current property portfolio of $17,900,000 on settlement of Bassendean acquisitions.
  • Trust’s Weighted Average Lease Expiry (WALE) of 5.5 years from 1 November 2021.
  • Significant depreciation benefits to investors and strong prospects for future growth.
  • The Trust also owns 2 Keane Street, Midland, which is 100% leased to the WA Government.
  • 2 Keane Street benefits from a core city centre location in the strategic Midland City Centre, which, according to State Government sources, has benefited from over $1.5 billion of government and private investment.

About Axia Corporate Property

  • Perth-based multi-disciplinary commercial real estate agency specialising in sales, leasing and management, with each director having extensive experience in their respective fields.
  • Wayne Mitsikas, Director of Investment Sales, is one of Perth’s leading commercial property directors and has been involved in many significant sales and leasing transactions.
  • Axia Corporate Property offers direct involvement of the executive team, together with a total team approach to ensure each clients investment is being properly handled at all times in a pro-active manner.

Axia Corporate Property’s key personnel and contacts are:

Wayne Mitsikas                Director                   +61 (0) 413 599 655

We are delighted to announce that our established multi-property fund has settled on its fourth acquisition, a multi-tenanted industrial building in the core northern Perth industrial locality of Wangara.

The acquisition by the QI Diversified Income Trust No 1 sees the addition of two high quality tenants who are both wholly owned subsidiaries of internationally listed conglomerates in Emerson Electric (NYSE) and Daikin Industries (TYO). 

The diversified fund has now reached 70% of its target size of $40 million. With the previous raisings being highly sought after and with only one further reopening of the fund likely, we encourage you to register your interest to ensure you are first in line for the remaining equity raising.

Investment Highlights

  • Through strategic analysis and selection, the Trust aims to provide investors with stable income return and capital growth over the life of the Trust.
  • QI Diversified Income Trust No. 1 will comprise a multi-property fund with an acquisition target of up to $40,000,000 in combined value of property assets
  • The Trust will focus on the acquisition of high-quality commercial assets in key sectors including retail, health services, industrial and commercial, with a target distribution of 7.0% p.a. over the Initial Term of the Trust.
  • The Trust now holds a portfolio of four assets worth $28,150,000 with a weighted average lease expiry (WALE) of just under 4 years to blue-chip tenants the WA Government, one of Australia’s largest home builders, the ABN Group and respective wholly owned subsidiaries of international companies Emerson Electric (NYSE listed) and Daikin Industries (TYO listed). 
  • The Trust is forecasting a 7.0% p.a. distribution in FY2022 and FY2023 with distributions paid monthly to investors.

About Quadrant Investments
Quadrant Investments is an established fund manager with over $80 million in assets under management. Together with its substantial shareholder and partner, the 108-year-old Richard Noble & Company, our team of experienced professionals have the insight and expertise to deliver long term wealth to our investment partners.

How to Invest 
To invest in this trust, register your interest here to be contacted at the next round of equity raising.