Drapac Trust No.3

• Commercial

Drapac Trust No.3 was established by Drapac Management Limited in March 2005 as an investment opportunity with an attractive annual yield and the potential for capital growth. The Trust was a single asset, closed ended vehicle which acquired 152-166 Sturt Street in Southbank for $6.0 million.

The property comprised two independent buildings used as a showroom and workshop for motor vehicle sales and servicing. Accessible via two street frontages, the site comprised two separate titles with 3,878 square metres of land and 5,055 square metres of building. Importantly, the site offered an excellent redevelopment opportunity being in a prominent location with a "Mixed Use" zoning.

$2.35 million in equity was raised from Wholesale investors to fund the asset purchase.

152-166 Sturt Street was sold to a private investor for $13.5 million in March 2008 and the Trust was wound up on 28 November 2008. Since inception, the Trust provided investors with an IRR of 33%, resulting in total return on equity of 155%.