A Geelong warehouse leased to one of the world’s largest surf apparel brands will be purchased by leading Australian fund manager Trilogy Funds, adding to its growing industrial portfolio.

Trilogy Funds has contracted to acquire the 3.8-hectare multi-warehouse property on the doorstep of the Geelong Port for the Trilogy Industrial Property Trust (the ‘Trust’), its second industrial property in Victoria.

The latest acquisition follows significant growth for the Trust, which now includes 15 major industrial properties in prime locations across the country with a Gross Asset Value of more than $280 million.

Trilogy Funds Manager - Property Funds Laurence Parisi said the property’s strategic location, size and strong tenant covenant made the property an attractive addition to its growing portfolio of manufacturing, logistics and distribution assets.

“With its prime location within the established Northern Geelong industrial precinct, directly opposite Victoria’s second largest port, Geelong Port, and proximity to the Princes Freeway and Geelong Ring Road, the property is one of the most highly sought after properties in the area, giving businesses direct access to shipping their products from Australia to the world,” Mr Parisi said.

“As well as its location, the property is a substantial landholding, sitting on a 3.76-hectare site that comprises two separate warehouse buildings with offices in a total Gross Lettable Area of 21,302 square metres.

“Fully leased to UG Manufacturing Co Pty Ltd, trading as renowned Australian brand, Quiksilver, a global leader in the sport, outdoor and lifestyle apparel industry. The property has a WALE of seven years, generates a passing net income of $2,249,000 per annum and includes fixed annual rental increases of 3%.”

Mr Parisi said there continued to be favourable market conditions for industrial property in Australia, as well as other significant opportunities in commercial real estate that were driving Trilogy Funds continued expansion of its property trust.

“The acquisition aligns well with our strategy to grow the Industrial Property Trust by capitalising on the soaring demand, historically low national vacancy rates, and annual rental growth we are continuing to see in the Australian industrial and logistics sector.

“There continues to be several long term thematics, including forecast population growth and ongoing shifts in retail behaviour, which will only serve to further increase the demand for warehousing and logistics facilities.”

The latest deal follows a busy year of property acquisitions for Trilogy Funds. The manager recently secured a $29 million dual warehouse property in Brendale, one of Queensland’s premier industrial precincts.

Trilogy Funds also took its first steps into the convenience retail and the large-format retail asset classes this month with the purchase of a $220 million portfolio of property income funds. The acquired assets are mainly large A-grade shopping centres strategically located in key growth corridors, including the newly opened $80 million Harpley Town Centre at Werribee in southwest Melbourne.

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Trilogy Funds continues to expand industrial trust | The Industrialist