Portfolio Snapshot
The Fuel and Convenience Trust (Trust) is an unlisted wholesale property trust developed to provide secure and reliable income, distributions paid quarterly and solid capital growth for investors. Amplify Funds Management are acquiring seven fuel centres strategically located in regional Queensland. This opportunity is only available to Wholesale/ Sophisticated investors.
100% Backed by Chevron
The seven fuel and convenience centres are leased to Chevron Australia Products and carry the Caltex and Puma brands. All the leases are net leases and combine to average 9.77 year WALE, and all have 3.0% p.a. rental increases. Chevron have 4 x 10 year options beyond their initial term on every site.
The seven fuel and convenience centres are leased to Chevron Australia Products and carry the Caltex and Puma brands. All the leases are net leases and combine to average 9.77 year WALE, and all have 3.0% p.a. rental increases. Chevron have 4 x 10 year options beyond their initial term on every site.
Investment Thesis
The Fuel and Convenience Trust will provide investors with stable and secure quarterly distributions with income and capital growth. This is achieved by:
- Focus on capital preservation.
- Income secured by long term lease contracts with Chevron.
- Certain growth through fixed 3.0% p.a. rental increases.
- Minimised exposure to outgoings and capital expenditure.
- Quarantined environmental risk laid off to tenants.
- Geographically diverse portfolio used as a risk mitigant.
- High and transparent barriers to entry for competitors.
Investment Metrics
| Forecast Average Distribution Return: | 8.5% p.a. paid quarterly |
| Forecast Distribution Return Range: | 8.0% p.a. Year 1, 10% p.a. Year 8 12.25% p.a. |
| Forecast Total Rate of Return/IRR: | 12.25% p.a. |
| Forecast Investment Equity Multiple: | Over 2 times (invest $1.00 and get over $2.00 back over the Total Trust Term) |
| Minimum Investment: | $100,000 |
Trust Metrics
| Total Purchase Price: | $32,000,000 million approximately |
| Investment Horizon: | 4 years + 4 years |
| Debt Target: | 55% LVR to major Australian bank |
| Equity Target: | $17,700,000 million |
For more information visit the Amplify Investment Portal.
Asset Location and Tenant Information
| Location | Initial Term Remaining | Lease Options |
|---|---|---|
| Atherton - 49 Tolga Rd | 11.4 years | 4 x 10 years |
| Banana - 100/22 Nicholson St | 12.2 years | 4 x 10 years |
| Bohle (Townsville) - 900 Ingham Rd | 10.4 years | 4 x 10 years |
| Charters Towers - 71 Thompson St | 11.4 years | 4 x 10 years |
| Gin Gin - 2 Mulgrave St | 8.8 years | 4 x 10 years |
| Nambour - 921 Nambour Connection Rd | 11.1 years | 4 x 10 years |
| Portsmith (Cairns) - 104 Cook St | 11.4 years | 4 x 10 years |
The Nambour Fuel and Convenience Centre is located on a high volume, major intersection on the eastern side of town.
Caltex Nambour is located on a major intersection on the eastern side of town on a major arterial road.
Bohle is a major industrial hub in Townsville, located to the west of the CBD. The Caltex branded fuel and convenience centre is a very popular facility that has been recently rebranded and extensively refurbished.
The mix of fuel and convenience sales has changed over the last two decades with convenience items now making up a significant proportion of sales.
Footnotes:
1. Forecast returns are predictive in nature and are calculated in accordance with a number of underlying assumptions to be set out in the Information Memorandum (IM). As such, returns maybe affected by incorrect assumptions or by known or unknown risks and uncertainties and may differ materially from results ultimately achieved. Returns are not guaranteed.
2. 8.5% Forecast Annualised distribution.
3. Weighted average lease expiry (by income) as at August 2024.
4. Chevron Australia Products contribute 100% of the Trust’s Net Income
5. Distributions will be paid if declared by Amplify Funds Management (Amplify) and will be subject to the terms set out in the IM.
6. As at 23 July, 2024. Subject to market fluctuation.
1. Forecast returns are predictive in nature and are calculated in accordance with a number of underlying assumptions to be set out in the Information Memorandum (IM). As such, returns maybe affected by incorrect assumptions or by known or unknown risks and uncertainties and may differ materially from results ultimately achieved. Returns are not guaranteed.
2. 8.5% Forecast Annualised distribution.
3. Weighted average lease expiry (by income) as at August 2024.
4. Chevron Australia Products contribute 100% of the Trust’s Net Income
5. Distributions will be paid if declared by Amplify Funds Management (Amplify) and will be subject to the terms set out in the IM.
6. As at 23 July, 2024. Subject to market fluctuation.
Our mission is to capture, create and enhance value and returns for our investors
We provide a range of unique investment opportunities in unlisted commercial property trusts that provide solid returns and capital growth to our investors.
FAQ
Amplify Funds Management Answer Your Frequently Asked Questions
Choosing a funds management company you can rely on can be daunting and it’s likely that you'll have questions. That’s why our Amplify investment professionals have provided you with the answers to the questions we’re asked most frequently. But if the information you’re looking for can’t be found below, contact Amplify Funds Management today to discuss your individual requirements.
What return can I expect from the Fuel and Convenience Trust?
The Trust is targeting an average distribution of 8.5% over its eight year Total Trust Term, and an Internal Rate of Return (IRR) of greater than 12.25%. The equity multiple to be delivered is more than twice the initial investment – i.e. invest $1.00 and get over $2.00 back over the life of the Trust.
What will my yearly distribution returns be over the term of the Trust?
Over the Total Trust Term, assuming a $1,000,000 investment at the targeted average distribution rate of 8.5%, your distribution return from the investment will be $85,000 per annum. This total amount will be paid quarterly - $21,250 per quarter.
How do I invest in the Fuel and Convenience Trust?
Read the Information Memorandum (IM), undertake your own investigations, and complete and return the application form that’s in the IM. If you need assistance, call Peter Rossi on 0407 179 389.
How does the investment work?
Each investor purchases Units in the trust. $1.00 equals 1 Unit. As we are seeking $17,700,000 from investors, there will be 17,700,000 Units assigned to investors. When you invest, you effectively become a part owner of these seven (7) Chevron / Caltex properties.
When will I receive my distributions and updates on my investment?
Cash Distributions will be paid quarterly following the end of each calendar quarter. Amplify Funds Management will provide updates every quarter, of activity on the portfolio and industry trends. In addition, you can check on your investment anytime on the Amplify Investment Portal.
Can my SMSF purchase units in an unlisted commercial property trust?
Yes, complying and self-managed superannuation funds may invest in Amplify property trusts.
What if I need my money back early?
This investment is illiquid and invested funds are held until the properties are sold, generally at the end of the trust term. Unit holders in the Fuel and Convenience Trust may sell their Units, subject to the understanding that whilst the Manager and Trustee may assist in the sale of Units, there is no obligation on their part to do so, and there is no established secondary market for the units.
Why does the Trust borrow money to buy the properties?
The Trust borrows money to provide investors with higher returns by using leverage (the difference between the bank interest rate and the income earned from the properties). This scenario assumes that the properties increase in value over time.
How much will the Trust borrow?
This Trust will borrow around 55% of the overall combined asset value of the seven (7) properties, which is approximately $18,500,000.
Will I be liable for any debt obligations of the Trust?
No. The Trust will secure “non-recourse” debt which quarantines the debt risk to the assets of the Trust which will be used as security for the debt facilities.
Can the Trust buy more properties and put them into the Trust?
No, the Trust is a closed ended Trust and restricted to investing in the seven (7) Chevron / Caltex convenience and fuel centres.
What happens if the Trust sells one or more of its properties?
The net proceeds of any sale will be distributed to investors or retained by the Trustee to reduce debt.
Who determines when the properties will be considered for sale?
The Manager has the responsibility to manage the investments (as a portfolio or as individual assets) of the Trust and seeks to deliver the investment objectives of the Trust, as described in the IM. The Manager will make any sale decision, subject to the prevailing market conditions and in accordance with the Trustee’s overall strategy of maximising returns to its Unitholders.
What are the risks associated with this investment?
Risks associated with this investment are outlined in Section 18 of the IM. The Manager has considered these and developed a range of mitigation strategies.
What is the relationship between Amplify, Chevron Australia (Tenant) and Chevron Corporation (NYSE: CVX)?
Amplify has leases where Chevron Australia Pty Ltd. are the tenant. The Tenant is a wholly owned subsidiary of Chevron Australia Downstream Holdings Pty Ltd, which is in turn a subsidiary of Chevron Corporation (NYSE: CVX). Note that the U. S. Parent, Chevron Corportion does not guarantee the performance of the Tenant.
WHY CHOOSE US?
Why Choose an Amplify Funds Management’s Commercial Investment Trust?
At Amplify Funds Management we use the wealth of our knowledge to your advantage. Combined, we have over 100 years of experience in the commercial property industry. wholesale investing solutions, high yield property investment, unlisted and diversified property portfolios.
