Main asset: Bunnings Newstead (under construction)
Year started: 2016
Original value: $79.5 million on competion
Minimum investment: $500,000
This is a new 17,704 sqm Bunnings Warehouse facility with 1,682 sqm of additional speciality tenancies being constructed by Bunnings Group Limited located on Breakfast Creek Road, Newstead, Qld, which is approximately 3.5 kilometres from the Brisbane CBD.
National Tenant on a long term lease
An agreement to lease the warehouse component of the building to “Bunnings Group Limited” (a subsidiary of ASX listed Wesfarmers Ltd) has been secured for a term of 12 years (plus 8 additional 6 year options) from the date of completion. The speciality tenancies have been supported by a three year rental guarantee from Bunnings Group Limited until such time as they are fully let.
Attractive regular tax-advantaged returns
Forecast initial cash yield of 5.00% pa* until the date of completion of the Property and 6.00% pa* thereafter to be paid quarterly. Depreciation and building allowances mean a high proportion of this income will be tax-advantaged.
Potential for capital growth
Long term population growth forecast for region and fixed rental growth augurs well for future capital price appreciation.
Experienced manager with a proven track record
The Trustee, MPG Funds Management Ltd, and parent entity the McMullin Group have over 40 years of commercial property investment, management and development experience including 15 years dealing with Bunnings investment properties.
Defined exit strategy
The trust has a defined exit strategy at the end of five years post practical completion.
Reduced capital volatility
Australian direct property has historically experience lower volatility than listed Australian and international shares and REITs.
*Forecasts are estimates only and are not guaranteed to occur. Please refer to the Information Memorandum for details relating to forecasts.
Status : Closed to new investors
Dividend reinvestment plan
5 years from the date of practical completion (est August 2018). When approaching this time unit holders will be given the opportunity to sell their Units or extend their term. See page 12 of the Information Memorandum for details.
Withdrawals will not be available during the term of the Trust.
Forecast 5.0 cents per unit (pro-rata) for the year ended 30 June 2017*
Quarterly in arrears from 31 March 2017
100% following practical completion
$79,500,000 on an ‘as if complete’ basis
Net Tangible Assets
87.0 cents per unit at 31 December 2017
Weighted average lease expiry
12 years from date of practical completion (estimated August 2018)