MPG Case Studies

About MPG Case Studies

Please note, past performance is not indicative of future performance. Any case studies on past 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.

Investment rationale

Established in 2005, the MPG Motor Vehicle Dealership Trust invited minimum investments of $30,000 to fund a $5.4 million showroom in Epping, Victoria. The new showroom was purpose built for Bayford Motors by McMullin Group.

Our Chairman, Trevor Gorman highlighted the potential for strong capital growth due to significant forecasts in population growth and infrastructure developments. These included the Craigieburn Bypass (completed in 2005) and the expansion of housing estates in the nearby suburb of Mernda.

In the PDS (Product Disclosure Statement), the 5 year average return was forecast to be 8.4%.

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 decided to remain in the Trust and roll over for a further 7 year term.

Our Expertise

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

As a result of their 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 investors used these proceeds to invest in the MPG Seaford Meadows Property Trustm, which was opened at the same time.