The MPG BW Port Macquarie Trust provides investors with an opportunity to invest in a busy Bunnings Warehouse and retail/lifestyle centre, located in the growing region of Port Macquarie, NSW.
Year started: 2018
Total Assets: $59.2 million
Assets: Oxley Corner (named after its prominent corner position on John Oxley Drive and Oxley Highway.)
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 5.30% pa* until the date of completion and 6.10%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 (IM).
Potential for capital growth
Population growth and fixed rental growth in the region augur well for future capital price appreciation. Detailed on page 4 of the IM.
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 of seven years. Detailed on page 10.
Reduced capital volatility
Australian direct property has historically experienced lower volatility than listed Australian and international shares and REITs.
Net Tangible Assets: $1.35 (30 June 2023)
Minimum investment: $500,000 (or $250,000 for investors with an accountant’s certificate)
Dividend reinvestment plan: No
Distributions: 6.00% for the quarter ended 30 June 2022
Distribution Frequency: Quarterly
Investment Term: 7 years from the end of Practical Completion and the beginning of the Lease with Bunnings.
Liquidity: 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 10 for details on liquidity.
WALE: 9.90 years
Tax Deferral: 100%
*Forecasts are estimates only and are not guaranteed to occur. Please refer to the Information Memorandum for details relating to forecasts.