The MPG BW Newstead Trust provides investors with an opportunity to invest in a brand new Bunnings Warehouse and retail centre, located in inner metropolitan Brisbane.
Year started: 2016
Total Assets: $103 million
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. has over 20 years of commercial property investment, management and development experience.
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.
Net Tangible Assets: $1.27 per unit (year ending 30 June 2023)
Minimum investment: $500,000
Dividend reinvestment plan: No
Forecast Yield: 6.00% (quarter ended 30 June 2022)
Distribution Frequency: Quarterly
Investment Term: 5 years from the date of practical completion (est February 2019). 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.
Liquidity: Withdrawals will not be available during the term of the Trust.
WALE: 18.6 years
Tax Deferral: 100%
APIR Code: MFM1638AU
*Forecasts are estimates only and are not guaranteed to occur. Please refer to the Information Memorandum for details relating to forecasts.