The trust commenced with the acquisition of two BP Jasbe Service Stations in the South Eastern Melbourne suburbs of Cranbourne West and Caldermeade. On acquisition both properties included 15-year Lease agreements to McDonalds, while the Cranbourne West property had an additional 15-year with Red Rooster.
Investors have enjoyed an average monthly income distribution of 7.9% since the beginning of the trust. When the original trust term of 6 years ended in September 2019, Fawkner Investors realised a value of $1.72 for each $1.00 invested. A majority of Fawkner investors also decided to remain invested in the trust for an additional three years, and continue to enjoy the consistent income returns and potential long term capital growth.
Our syndicates have a flat 1% management fee. We do not charge performance fees. All quoted income and capital returns are after all fees and costs.
Properties are chosen for their potential to provide reliable income and a capital gain. Distributions are paid monthly to our investors.
Fawkner Property syndicates are simple and transparent unit trusts, through which the investors own the property.
Our Independent advisory board is made up industry specialists from both unlisted and listed property backgrounds.
We work with SQM Research to get invaluable data on Australia's major asset classes
My family and I have invested in Fawkner Property trusts regularly over the past 9 years, achieving consistent monthly income returns and exceptional capital growth from each trust investment. Fawkner Property trusts continue to provide consistent capital security for me in retirement.
Fawkner Property is the solution to our property investment needs. Fawkner has delivered on their promise of providing regular monthly income and capital returns beyond expectation in addition to consistent investor communication, sharing of industry insights and regular updates on performance.
Fawkner Property’s disciplined approach to identifying and managing high quality, low risk commercial properties has helped me consistently achieve and exceed my personal investment goals. I highly value the Fawkner Investment team, who are responsible for managing all of my investments.
All our roadside retail properties must meet our strict criteria to ensure they will provide the best value for our investors. We also use a comprehensive due diligence process which includes:
The convenience, Quick Service Restaurant (QSR), and fuel retail sector provides highly desirable commercial property investments. The sector is resistant to economic downturns and strong tenants provide reliable monthly income.
At Fawkner property, we are market leaders in roadside retail and convenience, and we have syndicated over $250 million in roadside retail assets.
All the properties we purchase for our trusts must meet our strict selection criteria. We also have a comprehensive due diligence process to ensure our investors get the best outcome. Our due diligence checklist includes:
Retailers such as supermarkets enjoy a unique position in the market since they form part of consumers' essential spending. Large supermarkets also have long leases with fixed rental increases.
Our trusts are designed to provide reliable monthly income and long-term capital stability, which makes non-discretionary retail an ideal choice.
We have a comprehensive investment process which ensure any property we purchase as part of a trust meets our strict criteria. Our due diligence checklist includes:
Childcare and early learning centres may not be the first thing you think of when it comes to commercial property investments, but they provide a highly desirable opportunity. Some of the reasons why we invest in childcare include:
One of the risks of commercial property investment is tenant risk. This includes the risk that:
These risks and the way in which Fawkner Property deals with these risks is set out in a separate section of the disclosure document devoted to risks of investing.
There is limited information for the commercial property investor. Despite vendor statements, with more or less disclosure depending on the jurisdiction, and registered leases (other than in Victoria), there are many side deals between landlord and tenant and, except in major shopping centres, the trading position of a commercial tenant is difficult to find out.
Tenant demand for commercial property is what economists call a “derived demand” – meaning that the commercial real estate is used in the production of goods or services for sale by the tenant. Understanding the drivers of the business of the tenant gives insights into the prospects of the tenant and the reliability of the rental stream. It is not much use having fixed annual increases in rent if the higher rent becomes beyond the capacity of the tenant to pay.
Becoming knowledgeable in the business of particular types of tenants is exploiting the lack of information that pervades commercial property markets.
While Fawkner Property people have long experience in commercial and industrial property broadly, we have developed market leading expertise in motor vehicle fuel and convenience retail, as well as early learning.
SMSF trustees invest in property syndicates to obtain reliable regular income payments, while protecting their capital from inflation. Property syndicates provide regular income from monthly rent payment from tenants in commercial properties. With annual rent increases, the value of the properties rises over time, keeping pace with inflation.
If Investors do not vote to wind up the Trust at the Exit Offer, the trust will be extended for a time recommended in the report accompanying the Exit Offer. Essential Services Trust 1 will have a provision for annual minor liquidity events, if the trust continues after the Exit offer. These Limited Redemption offers will be for a specified number of units at Fair Value, up to 5% of the trust. Any redemption offer will be sent to all Investors and be subject to the trustee being satisfied that the offer is in the interest of all Investors.
All trusts have a fixed term – usually six or seven years – which is set out in the disclosure document. At the end of the term an Exit Offer is made to investors, giving them the chance to exit at a nominated exit price, determined by the trustee in accordance with the deed (Fair Value). If 75% or more elect to exit, the trust is wound up. If less than 75% wish to exit, buyers are found for their units at the Fair Value. Priority is given to existing unitholders to purchase the units at the sale price. If units remain unsold after six months, the trust is wound up.
There are some important contrasts:
As a commercial property syndicator, Fawkner Property creates unit trusts, which purchase commercial properties, and offers the units to investors.
The goal of these trusts is to provide investors with reliable monthly income derived from commercial properties tenants as well as capital growth in the value of the properties.
Performance History – 30 June 2020