The MPG BW Trust 2 provides investors with an opportunity to invest in a busy Bunnings Warehouse property, located in a well established and growing region of Queensland.
Year started: 2014
Total Assets: $59.4 million
Assets: Bunnings Warehouse Bundamba, QLD
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
The distribution for the year ending 30 June 2023 is forecast to be 9.50%* 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.
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 PDS.
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 REITs.
Net Tangible Assets: $2.47 as at 30 June 2023
Minimum investment: $500,000 for professional and sophisticated investors only
Dividend reinvestment plan: No
Distributions: 9.50% for year ending 30 June 2022
Distribution Frequency: Quarterly
Investment Term: 7 years. This trust was successfully rolled over in February 2021.
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 11 for details on liquidity.
WALE: 5.83 years for year ending 30 June 2022
Gearing: 31% for year ending 30 June 2022
Tax Deferral: 59.60% for year ending 30 June 2022
*Forecasts are estimates only and are not guaranteed to occur. Please refer to the Information Memorandum for details relating to forecasts.