FRP Capital Brickworks Information Memorandum July 2023 - Flipbook - Page 20
Brickworks Marketplace
Information Memorandum
Financial Summary
& Investment Returns
In assessing the ability of the Fund to deliver the
target returns, the Manager conducts detailed
forecasts of net income projections. These
projections are based upon current property
financials, estimated assumptions for the Property
and market fluctuations, and anticipated capital
expenditure for the Asset.
19
In performing a forecast of the Trust’s ability to reach
the targeted Year 1 distribution of 6.07 cents per unit
per annum (equating to 6.07% net P.A.), a number of
assumptions have been adopted, including:
1. The debt facility is anticipated to represent an average
interest rate of 4.40% per annum for the initial 3 years.
2. The Debt Facilities generally have terms between two
and three years and therefore returns and distributions
from Year 3 or 4 will be subject to successfully refinancing
the debt facilities at the conclusion of the Debt Facility’s
term or before and the cost of that refinance.
Below is the forecast of Year 1 income and
distribution for the Trust. The below information
is based upon income from leases, operating
expenditure data, capital expenditure forecasts and
market assumptions for the cash flow of the Asset.
3. The Manager will charge a Trust Management Fee
of 0.8% of the GAV in Year 1.
4. Capital Expenditure reflects the anticipated works
required in Year 1 based upon the technical Due
Diligence performed on the Asset.
Income
Gross Income
Non Recoverable Outgoings
Net Property Income
Interest Cover Ratio
6. Other assumptions in relation to leasing activity and
rental income. Failure to realise forecast rental income
could result in a reduction to the distributions available
to Investors.
7. This leasing strategy has the potential contribute
an additional $550,000 worth of gross income to the
Asset. This has not been factored into existing returns.
The Manager does not give any assurance or guarantee
that the Trust will achieve its target return on equity or
distributions.
For further information on the risks please refer to page 23.
2.63
$6,937,878
Number Units on Issue
$35,050,000
($1,384,364)
Value of Units on Issue
$35,050,000
$5,553,514
Unit Price
Distribution Per Unit
Expenses
Interest Cost
5. Tenant Incentives assumptions are based off market
rates as per the Valuation.
($2,756,000)
Trust Management Fee
($670,000)
Net Operating Income
$2,127,514
Forecast Return of Equity
Target 7 year Internal Rate of Return
$1.00
$0.0607
6.07%
11.35%
Target
7YR IRR
11.35%
