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Stadia EMP No.1 Trust

Office properties in established metropolitan office park targeting 8.75%+ distributions

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The Stadia Capital EMP No.1 Trust is an unlisted property fund that invests in a metropolitan office portfolio unerpinned by strong tenant covenants. The Fund is acquiring two office buildings, Building 8 and Building 23 (80% interest) in the Garden City Office Park in Eight Mile Plains QLD.

Garden City Office Park is one of three major business parks located on the south-side of Brisbane, alongside the Pacific Motorway. The Park was constructed by OPD Developers, which is owned by Bill Henderson who remains aligned to the success of the Park as a tenant in Building 8, co-owner of Building 23 and as property manager. Core Property considers Bill Henderson’s alignment to be important to the success of the properties and relationship with key tenants. A co-ownership agreement will exist between the Trust and OPD which effectively provides each co-owner with a first right of refusal to acquire the other co-owner’s interest before it is offered for sale to a third party.

On a combined basis, the property metrics are excellent: (1) a Weighted Average Lease Expiry of 7.3 years (by income), with further options to extend; (2) 100% occupancy; (3) fixed annual rent increases of 3.0% p.a.; and (4) quality tenant covenants including the Queensland State Government, Fulton Hogan and Corporate House Services – all of which are likely to be protected from further COVID-19 impacts. Both buildings are two-level modern office buildings with total NLA of 4,907 sqm.

The Fund will have an initial term of 7.5-years with the Manager forecasting distribution yield to commence at 8.75%, with an average distribution yield of 9.5% p.a across 7.5 years on the initial investment.

 

Core Property Rating - Recommended

Fund Status - Closed

This publication is not and should not be construed as, personal financial product advice, an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Any opinion contained in the Report is unsolicited general information (general financial product advice) only. Read more here.