Trilogy buys maiden NT asset

Amart Furniture has turnover rent built into its Homezone Berrimah lease.

Trilogy Funds has picked up a near new large format retail centre with turnover rent built into the lease of the key tenant.

The Stuart Highway site spreads 1.9 hectares with 260 car parks.

The Homezone at 660 Stuart Highway, Berrimah, between Darwin and Palmerston, is the group’s first Northern Territory asset – costing $29 million.

Trilogy’s Hexham asset, occupied by Downer EDI and Lion Dairy Drinks, cost $28 million last year.

It will be held by the Trilogy Industrial Property Trust which now owns 16 properties worth a total of $207.33m.

Colliers’ Craig Inkster was the agent.

Homezone Berrimah

Constructed by Norbuilt in 2018, replacing a Kevin Quinlan Auto car dealership which had only set up a few years before, the Homezone Berrimah site spreads 1.939 hectares, with 260 car parks.

Four tenants occupy the 9448 square metre complex; Amart Furniture rents the biggest space, the other businesses are Barbecues Galore, Joyce Mayne and Reece.

There is also a rear loading dock accessible by semi-trailer.

The Weighted Average Lease Expiry is 9.8 years.

Trilogy will be able to claim depreciation benefits for tax purposes too.

Berrimah is about 10 kilometres from each of Darwin and Palmerston.

Trilogy hits 25 with flurry of deals

Trilogy, which turns 25 next year, holds a significant portfolio diversified by sector and state.

It is also a major regional property investor.

Four weeks ago, again for TILT, the manager outlaid $16.14m for an industrial investment covering 1.5 hectares, across two roads, in Newcastle’s Tomago, near a Hexham warehouse the group acquired last year for $28.01m (story continues below).

Trilogy recently paid over $20 million for a Bells Creek (Sunshine Coast) warehouse.

Since COVID, Trilogy has also boosted the trust with assets in the Gold Coast, Sunshine Coast and Toowoomba.

The Ravenhall, Melbourne, office which Trilogy sold last year.

“The growth projections for Darwin’s economy were an important driver for the trust’s first property acquisition in the Northern Territory,” Trilogy Funds co-founder and managing director, Phillip Ryan, said.

“The Northern Territory experienced significant economic growth of 4.7 per cent in the 2021-2022 financial year, making it the third strongest jurisdiction in this regard,” he added.

“This was combined with impressive increases across the region in retail trade, wages and household income,” according to the executive.

“The Northern Territory has become a hotspot for investments and jobs, with a growing investment pipeline in the mining, oil and gas, agribusiness and defence sectors, all of which contribute to the government’s target of growing the Territory to a $40 billion economy by 2030.

“There has been significant investment in the region by both the government and…private sector with another $50b set to be invested over the next few years, that is expected to underpin future economic growth and have a direct impact on Darwin’s industrial markets.

“The tenants at this property…have largely been insulated from COVID, unlike other retail in the sector, who have felt the impact of the increasing popularity of online shopping.

“A benefit of this type of asset class is the turnover rent threshold included in Amart Furniture’s lease, which was met during the acquisition process.

“This not only increases returns for the trust, but it’s another indicator of a strong local economy as people continue to spend on discretionary household purchases”.

The company became Trilogy Funds in 2004, with the support of ex-Challenger executives, Roger Bacon and John Barry, who still hold executive positions there.

Earlier this year, for another fund, the group sold a modern office at Ravenhall, south west of Melbourne, for $13m.

Quinn Reynolds’ Marcus Quinn and Lincoln Reynolds with Savills’ Julian Heatherich, Benson Zhou and Nick Garoni were the agents.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of