The MPG BW Trust provides investors with an opportunity to invest in a portfolio of three Bunnings Warehouse properties and an Aldi Supermarket in well established areas of Queensland, New South Wales and Victoria.
Status: Closed
Year started: 2014
Total Assets: $134.38 million
Assets: 4 – Bunnings Warehouse (Blacktown), Bunnings Warehouse (Bundaberg), Bunnings Warehouse (Young), and Aldi (West Melbourne)
Occupancy: 100%
National tenants on long term leases
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 8.75* CPU to be paid quarterly. Depreciation and building allowances mean a high proportion of this income will be tax-advantaged. Detailed on page 18.
Potential for capital growth
Population growth and fixed rental growth in the regions augur well for future capital price appreciation. Detailed on page 8 of the Information Memorandum.
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 11.
Reduced capital volatility
Australian direct property has historically experienced lower volatility than listed Australian and international shares and REIT’s.
Net Tangible Assets: $2.33 (30 June 2024)
Minimum investment: $250,000 for approved wholesale investors
Dividend reinvestment plan: No
Distributions: 8.75* CPU (30 June 2024)
Distribution Frequency: Quarterly
Investment Term: 7 years. This trust was successfully rolled over in February 2021.
Liquidity: The Constitution allows Unitholders to withdraw in limited circumstances. An investment in the Trust is to be considered illiquid. The Trust is to be considered a long term investment with an initial term of of seven years with the exit mechanism as outlined on page 11 of the Information Memorandum.
WALE: 3.4 years (30 June 2024)
Gearing: 47.5% (30 June 2024)
Tax Deferral: 100% (30 June 2024)
*Forecasts are estimates only and are not guaranteed to occur. Please refer to the Information Memorandum for details relating to forecasts.