EXECUTIVE SUMMARY The Quanta Tennyson Street Office Trust will be a closed- ended Trust comprising a fully leased office building with a Queensland Government anchor tenant, and 4.70 year WALE. The Trust will have a term of 7 years and an anticipated investment horizon of 5-6 years.
$
8.65% Forecast 5-Year Average Distribution Net p.a.
(8.25% net p.a. Year 1)
$6.625M Purchase Price $
$
The Manager will raise $4,450,000 of equity to acquire 9 Tennyson Street, Mackay at a Purchase Price of $6,625,000, with an anticipated date for Financial Close of 25 October 2024.
7-Year Trust Term
$1.00 Current Unit Price (NAV)
Acquisition Snapshot Quanta has agreed terms to purchase a 1,778 sqm, two level office building with level 1 fully occupied by the State Government and the ground floor occupied by Pentacon and New York Stock Exchange (NYSE) listed Caterpillar Inc. Transaction highlights include: • Fully leased with 93% of the income underpinned by Government and Fortune 500 tenants. • Under rented with Pentacon’s passing rent being 34% below the market rent assessed by an independent third-party bank valuer. • The building has recently undergone a $2 million upgrade to provide a high standard of office accommodation for the State Government, which is specialised to suit their long- term operational requirements. • Purchase price is 30% below replacement cost. • Modern Improvements with limited capital expenditure requirements within the investment horizon. • Highly attractive 5-Star NABERS energy rating, being one of only three buildings in the Mackay CBD uniquely positioned in the market to be suitable for new government leases.
%
Loan to Value Ratio (LVR) 55% %
100% Occupancy Rate
WALE by Income (Years) 4.70
30% Below Replacement Cost
Secure Income 93% leased to Government and listed tenants
5 Star NABERS Energy Rating
$
The Asset strategy is to grow the net income by increasing rents to market as tenancies expire and expanding the State Government occupancy resulting in increased asset value and higher, more robust cashflows. The asset will be sold upon resetting the State Government lease.
Income Tax Deferred Estimated 50% of Income Tax deferred (Year 1)
QUANTA TENNYSON STREET OFFICE TRUST | Information Memorandum
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