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The following case studies are examples of prior transactions which Trafalgar Corporate has created. While the case studies are not indicative of either the types of investments the Group will make or the returns it may achieve, they demonstrate the experience and depth of expertise the management team possesses.
In 1998, Trafalgar Corporate acquired a former oil terminal from BP Australia Limited and structured the transaction to maximise BP’s interests. The development concept involved the creation of a 29 lot industrial subdivision, which was then marketed to a range of institutional and private investors. In a transaction which had an end sale value of $27 million, Trafalgar Corporate transformed the 12-hectare former oil terminal into an industrial business park for small and medium sized enterprises. The remediation of the site was extensive, with more than 300,000 cubic metres of soil either relocated or reworked to bring the site to EPA standards. All industrial lots were sold within ten months of completion of the subdivision. The transaction generated a return on costs of 31%.
In 2001, Trafalgar Corporate acquired a 5 hectare property in Western Sydney from Boral and arranged the construction of a new head office facility for Boral Construction Materials Limited (Boral Materials) on the basis of an agreement for lease. Upon completion, the property was leased to Boral Materials on a 15 year triple net lease guaranteed by its listed parent company, Boral Limited.
In 2000, Trafalgar Corporate
(via an investor fund),
together with Allco, arranged
and financed the sale
and leaseback to Qantas
Airways Limited of its global
headquarters in Sydney,
NSW. The property was
leased to Qantas on a 10
year triple net lease with
a series of 5 year renewal
options. The property has
recently been independently
valued at $175 million.
In 2004, Trafalgar Corporate entered into a put and call option agreement to purchase the ATO property at Hurstville. Importantly, a condition of exercise of the options was that the ATO would agree to vary their lease over the property to extend the residual term from approximately 4.5 years to 10 years. Total acquisition costs amounted to $69.6 million, which was funded with approximately $22.6 million in equity and the balance in debt and preferred equity units. Completion of the acquisition occurred in February 2005. The restructuring of the ATO lease initiated by Trafalgar Corporate created significant increased value. This has created an A-grade investment property for the Group.
The Centenary Square Fund is a closed ended Fund with a 50% interest each being held by Trafalgar and Laing O'Rourke. The Fund was created to complete the acquisition and further development of the Centenary Square site at 100 Wickham Street, Fortitude Valley in Queensland. In December 2005 The Fund acquired the Centenary Square site which comprised of an existing building of 13,132sqm of Net Lettable "B" grade commercial space and 1,067sqm of additional land which has approval for a retail and commercial building with over 19,530sqm of Gross Floor Area. The acquisition price was $50.5m. During the Fund's ownership of the site a significant amount of work was completed in taking the Development Approval to a stage whereby construction and development of the site was in a position to commence. An opportunity arose in August 2006 for the Fund to realise a substantial profit from an offer received to purchase the site, The site was sold on 14 September 2006 for $66 million. |
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