Main asset: Bunnings Bundamba, Qld
Year started: 2014
Original value: $32 million
Minimum investment: $500,000
A new hardware warehouse facilities being constructed by Bunnings Group Limited located in well-established and growing regions of Queensland.
National tenant on a long term lease
An agreement to lease the buildings to “Bunnings Group Limited” (a subsidiary of ASX-listed Wesfarmers Ltd) has been secured for a term of 12 years from the date of completion.
Attractive regular tax-advantaged returns
Forecast yield of 5.70% pa* until the date of completion and 7.50%pa* thereafter to be paid quarterly. Depreciation and building allowances mean a high proportion of this income will be tax-advantaged. Detailed on page 18 of the Information Memorandum.
Potential for capital growth
Population growth and fixed rental growth in the regions augur well for future capital price appreciation. Detailed on page 8 of the PDS.
Experienced manager with a proven track record
The Trustee, MPG Funds Management Ltd and parent entity McMullin Group have over 35 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 of seven years. Detailed on page 11.
Reduced capital volatility
Australian direct property has historically experienced 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
$500,000 for professional and sophisticated investors only
Dividend reinvestment plan
The Trustee does not expect the Trust will be liquid. Unitholders will only have the right to sell any Units they buy subject to approval by the Trustee. The Units will not be listed on any stock exchange and will be redeemed or repurchased by the Trustee, at the Trustee’s sole discretion. See page 11 for details on liquidity.
7.50 cents per unit pa*
Net Tangible Assets
$1.22 as of 30 June 2016
Weighted average lease expiry