This is not a recommendation to sell or buy or subscribe into any investment. A thorough due diligence on your side will be needed before making the decision of commitment into any investment mentioned here.
838 Marion Road Trust is opening new opportunities for you through the
private online funding platform Morgan Capital
Adelaide, the capital of Australian state, South Australia (SA), is famous for the exquisite wine, housing 2 international universities and home to 1.7 million people.
Attracting over 4 million international visitors annually, Adelaide is one of Australia’s booming region and investors flocked to this city due to increasing confidence in investment opportunities.
Set to lead the nation with the fastest growth, SA is poised to be the fastest growing state in Australia this year, according to Deloitte Access Economics’ Outlook.
As we have mentioned before, 838 Marion Road Trust is brought by Red Wealth, SA homegrown prominent property and commercial investment company in South Australia.
838 Marion Road Trust Key Features
Located alongside Marion Road, one of the major roads in South Australia, which connects surrounding suburbs to the city centre. The City of Marion is located about 10km from south-west of the Adelaide CBD, covers 55 square km and stretches from the Glenelg tramline
in the north to Hallett Cove in the south.
One of South Australia’s metropolitan councils, Marion boasts a diverse economic base that is primarily centered around Edwardstown industrial area, Science Park, Clovelly Park including the Tonsley redevelopment.
The property has a landmass holding of 6086 m2 and lettable area of 5,764-meter square. The property is situated on a substantial land
holdings of 6,086m2 approx. with a 45.72 metre frontage to Marion Rd. The property is a large format retail showroom, bulky goods and office complex constructed over two levels in 2004.
838 Marion houses the branches of some of Australia’s prominent brands that have shown tremendous growth and healthy revenue projection forecast.
The tenant income is evenly distributed across the main tenancies, which include a variety of
tenants from national retail and bulky good brands to government-backed agencies and
health care service providers.
Let’s get know few of the key tenants!
99 Bikes was founded by Matt Turner. Matt’s father, Graham Turner was one of the founders of the successful travel business Flight Centre. Graham continues to be an adviser and investor in the 99 Bikes business. There are currently 37 stores Australia wide, with the goal of adding a further 7-8 stores per year.
99 Bikes is a nationally recognised brand, and the parent company has a turnover of upwards
of $100 million per year.
Lessee: 99 Bikes Pty Ltd
Lease Term: 7 + 5yr Lease
Commencement: 1st February 2017
Gross Rental: $122,750 per annum
Rent Review: Fixed 2% annually,
market at renewal
Gross Rental: $246/m2
Junction Australia is a social enterprise providing a wide range of community support services and quality housing options to South Australians. They assist over 8,500 South Australians
Junction Australia receives funding from both state and federal government.
Lessee: Junction Australia Pty Ltd
Lease Term: 3 + 1 + 1yr Lease
Commencement: 1st August 2017
Gross Rental: $77,200 per
annum plus GST
Rent Review: Fixed increase 3%,
market at renewal
Gross Rental: $180/m2
Founded in 2008, Scooter Hut has been awarded the Worlds most #1 Trusted Freestyle Scooter Stores. With over 30 different brands and 2000 different products available through their retail and online stores.
Lessee: Scooter Hut Pty Ltd
Lease Term: 3 + 3yr Lease
Commencement: 1st Nov 2017
Gross Rental: $55,000 per
annum plus GST
Rent Review: Fixed for initial term, 4% annual upon renewal annually, market at renewal
Gross Rental: $200/m2
Other prominent tenants including Haggle Co., IT Warehouse, Blackwood Sound, X-Golf and Adelaide Fitness and Performance Centre hold reputable records of high turnover and positive cash flow, which is a great sign of Marion Centre as a whole
Marion 838 holds a progressive potential for boths funders and the trust. This been said, it would be a great funding opportunity and leverage for anyone seeking for a long-term and low-risk investment.
In the next article, we will evaluate the underlying risks that come with the funding and what are the measures taken by the Trust to minimise these risks.