Main asset: Kmart Port Macquarie
Year started: 2015
Original value: $30.3 million
Minimum investment: $500,000
A new 7,037sqm Kmart store with 1,089 sqm of complementary specialty retail tenants, developed by Kmart Australia Limited in Port Macquarie, NSW.
100% of the rent payable by Kmart on a long term lease
A lease to Kmart Australia Limited (Part of ASX listed Wesfarmers Group Ltd) has been secured for a term of 12 years (plus six additional five-year options). This agreement also covers the rent for the additional 1,089 sqm of specialty stores.
Attractive regular tax-advantaged returns
Forecast initial cash yield of 5.50% pa* until the date of Practical Completion of the Property and 8.10% pa* thereafter to be paid quarterly. As this Property will be brand new, depreciation and building allowances mean a high proportion of this income will be tax-advantaged. Details on page 19 of the Information Memorandum.
Potential for capital growth
Long term population growth forecast for the region and fixed rental growth augurs well for future capital price appreciation. Detailed on page 5.
Experienced manager with a proven track record
The Trustee, MPG Funds Management Ltd and parent entity McMullin Nominees Pty Ltd have over 40 years of commercial property investment, management and development experience.
Defined Exit Strategy
The Trust has a defined exit strategy at the end of seven years. Detailed on page 12 of the Information Memorandum.
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.
Kmart Port Macquarie Flyover
Status : Closed
$500,000 or $100,000 from approved sophisticated investors
Dividend reinvestment plan
The Trustee does not expect the Trust will be liquid during the initial term. Unitholders will only have the right to sell any Units they hold subject to approval by the Trustee. The Units will not be listed on any stock exchange and may be redeemed or repurchased by the Trustee, at the Trustee’s sole discretion. See page 12 of the Information Memorandum for more details.
8.1 cents per unit per annum
100% post completion in March 2017
Net Tangible Assets
Weighted average lease expiry
12 years on completion