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Achieving outstanding value for unitholders

Essential Services Trust No.12

Trust snapshot

6.00%
Total return per annum
6.00%
Income return per annum
-
Capital return per annum
2020
Year established

Trust Snapshot

Download PDS
6.00%
Total return per annum
6.00%
Income return per annum
-
Capital return per annum
2020
Year established

Major tenants

No items found.

Essential Services Trust No.12

Achieving outstanding value for unitholders

Portfolio summary

Essential Services Trust No.12 holds 12 properties ranging across the roadside retail and childcare sectors. The trust offers assets across Fawkner's strict acquisition process for acquiring high quality roadside retail assets, convenience and childcare. The trust was launnched offering unitholders a consistent, reliable monthly income stream of 6.00% per annum.

The trust incepted with a WALE of over 14 years and 100% occupancy across the portfolio.

Key features

6.00% per annum consistent, reliable monthly income
A wide range of national tenants in the Roadside Retail retail sector
Newly established sites with minimal capital expenditure requirements
An 'essential service' focused trust that was minimally impacted by COVID-19

Property assets

Properties
Major Tenants
Location
Liberty Landsdale
Liberty
Landsdale WA
Green Leaves Byford
Green Leaves
Byford WA
BP Kurmond
BP
Kurmond NSW
7-Eleven Joondalup
7-Eleven
Joondalup WA
Puma Hamilton Hill
Puma
Hamilton Hill WA
7-Eleven Ellenbrook
7-Eleven
Ellenbrook WA
7-Eleven Springfield
7-Eleven
Springfield QLD
Liberty Garbutt
Liberty
Garbutt QLD
Liberty Bundaberg
Liberty
Bundaberg QLD
Liberty Karawatha
Liberty
Karawatha QLD
Liberty Helensvale
Liberty
Helensvale QLD
Caltex Kialla
Caltex
Kialla VIC

What we offer our investors

Low fees

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.

Reliable income

Properties are chosen for their potential to provide reliable income and a capital gain. Distributions are paid monthly to our investors.

Simplicity

Fawkner Property syndicates are simple and transparent unit trusts, through which the investors own the property.

Independently recommended

Our Independent advisory board is made up industry specialists from both unlisted and listed property backgrounds.

SQM Research

We work with SQM Research to get invaluable data on Australia's major asset classes

Our investment strategy

Different tenants across portfolio properties

Multiple industries in each portfolio

Properties spread across diverse geographies

How to invest

There are different ways of structuring your investment to suit all types of investors. Find out how you take part in this unique opportunity.

Contact us

Our Investors

Talk to an expert

Our team is ready to help you with any questions you may have about our commercial property investments.

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Frequently asked questions

How do you select roadside retail properties to purchase?

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:

What makes roadside convenience retail a good investment?

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.

How do you select retail locations to purchase?

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:

  • Ensuring that the property has no latent defects
  • Comparing the property to its market peers
  • Ensuring that the conveyance is legally effective
  • Form a capital expenditure plan to assure funding for standard maintenance
What makes non-discretionary retail a good investment?

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.

How do you select childcare centres to purchase?

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:

  • Ensuring that the property has no latent defects
  • Comparing the property to its market peers
  • Ensuring that the conveyance is legally effective
  • Form a capital expenditure plan to assure funding for standard maintenance
What makes childcare centres a good investment?

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:

  • Childcare is an essential service so it is resistant to economic downturns
  • Demand will continue to rise as the population grows
  • Large, financially strong national brands ensure reliable rental income
How secure is the rental income stream from tenants?

One of the risks of commercial property investment is tenant risk.  This includes the risk that:

  • The business of the tenant fails and the tenant is unable to continue to honour the lease obligations
  • The tenant completes the current term of the lease but does not renew
  • And there is a market review and, based on the business of the tenant, the rent reduces

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.

What types of commercial property does Fawkner Property look for?

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.

Why do SMSF trustees in property trusts?

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.

What happens if the trust is extended?

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.

What does it mean that unlisted property trusts are ‘fixed term’?

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.

How does a commercial property syndicate compare to a residential property investment?

There are some important contrasts:

  • The syndicate is professionally managed, so you do not need to be involved in hiring managing agents, leasing decisions, capital expenditure decisions, and owners’ corporation meetings.
  • Capital expenditure is allowed for by the manager, so you will not need to come forward with more money to upgrade the property.
  • If there is a loss, your downside is limited to your investment, whereas in a geared residential investment, the lender has full recourse to your other assets.
  • Commercial properties are not subject to residential tenancies legislation, which limits the field of action of the landlord.
  • While residential property leases are for a maximum of one year, with a market rent review each year, commercial property leases are longer – sometimes longer than 10 years – and have fixed or CPI increases each year, giving greater certainty of income.
  • Dealings with commercial tenants are based on business principles, whereas dealings in relation to the principal place of residence of a tenant can have an emotional overlay.

What is an unlisted property trust?

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.

Our performance history

Performance History – 30 June 2020

Return (%)
35%
30%
25%
20%
15%
10%
5%
21.50%
21.60%
15.30%
30.60%
11.74%
14.67%
11.70%
5.79%
10.50%
10.60%
7.67%
23.00%
4.21%
7.15%
4.69%
0.00%
11.00%
11.00%
7.63%
7.60%
7.54%
7.52%
7.01%
5.79%
2011 (Sold)
2011 (Sold)
2013
2014 (Sold)
2015
2015
2016
2017
BP Seaford, VIC
BP Vermont, VIC
Private Property Trust
Private Property Trust
Private Property Trust
Private Property Trust
Private Property Trust
Private Property Trust