Case Studies

Past performance is not indicative of future performance.

These case studies on recent sales provide a selection of historical information relating to the sale of these particular properties. The case studies are in summary form only and have no correlation to any other MPG Trusts. Total returns include capital gains as well as distributions paid during the life of completed funds shown on a per annum basis. Performance has been determined after the properties are wound up.

Each fund managed by MPG will have different characteristics, properties and risk and should be assessed by an investor independently of the performance of completed funds.

The MPG Motor Vehicle Dealership Trust

An initial investment of $100,000 in 2005, realised $240,000 in cash distributions and capital gain when the trust was wound up in 2014.

Investment rationale

Established in 2005 the MPG Motor Vehicle Dealership trust invited minimum investments of $30,000 for a $5.4 million showroom for Bayford Motors in Epping. The product disclosure statement forecast a 5 year average return of 8.4%.

The property was purpose built for the tenant by the McMullin Group on behalf of MPG and its investors.  In his Chairman’s Letter, Trevor Gorman highlighted the significant forecast population growth and infrastructure developments in the region that pointed to the potential for strong capital growth.  These included the Craigieburn Bypass which was completed in 2005 and the expansion of housing estates in Mernda.

An investor of $100,000 received $8,400 in distributions each year which were significantly tax advantaged. At the end of the first 7 year term (April 2012), almost 90% of unitholders elected to remain in the Trust and roll for a further 7 year term.

MPG Expertise

In 2014 the tenant, Bayford Motors, exercised their option for a further lease term and MPG analysis showed that this was a good time to realise the growth for the investors.  The property was sold at a hotly contested auction in February 2015 for $9,300,000.

As a result of an initial $100,000 investment, investors realised $240,000 in distributions and capital gain over the 9 year period. This makes an average total annual return of 11.96%.

Many of these investors used these proceeds to invest in the MPG Seaford Meadows Property Trust which was opened the same time.