Ex-Challenger trio raise Trilogy

A new boutique fund manager set up by three former Challenger Financial Services senior executives has seen its first property syndicate successfully filled.

Trilogy Funds Management completed a $7.5 million capital raising to purchase the Melbourne headquarters of the travel book publisher Lonely Planet for $14.4 million.

Trilogy executive chairman Rodger Bacon told Money Management the response from financial planners was “very positive” towards the syndicate.

“With a highly predictable income yield reaching 10 per cent in the fifth and final year of the syndicate and the anticipated capital appreciation from a quality property, advisers saw the potential of this investment,” Bacon said.

“Advisers recognised the advantage of an investment with a ‘double net’ lease and predictable cash flows.”

The ‘double net’ lease means Lonely Planet pays all outgoings during the period of the syndicate, including increases.

Trilogy has been set up by Bacon, John Barry and David Hogan, who all held senior positions in Challenger when the company was run by Bill Ireland.

On formation, Trilogy acquired a small property funds manager, MDRM Investments, from a Brisbane-based legal firm.

The administration of the business remains in Brisbane because of the lower operating costs compared to Sydney. However, the management team is Sydney based.