The MPG Hardware Trust 2 provides investors with an opportunity to invest in a Bunnings Warehouse property, located in one of the fastest growing regions of Tasmania.
Year started: 2016
Total Assets: $29.8 million
Assets: Bunnings Warehouse Kingston, TAS
National tenant on a long term lease
An agreement to lease the building to “Bunnings Group Limited” (a subsidiary of ASX-listed Wesfarmers Ltd) was secured for a term of 12 years (plus eight additional 6 year options) from the date of completion.
Attractive regular tax-advantaged returns
Depreciation and building allowances mean a high proportion of this income will be tax-advantaged. Details on page 17 of the Information Memorandum.
Potential for capital growth
Long term population growth forecast for the region and xed rental growth augurs well for future capital price appreciation. Details on page 5 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 at the end of seven years. Detailed on page 10 of the Information Memorandum.
Reduced capital volatility
Australian direct property has historically experienced lower volatility than listed Australian and international shares and REITs.
Net Tangible Assets: $1.78 as at 30 June 2023
Minimum investment: $500,000 or $50,000 to approved sophisticated investors
Dividend reinvestment plan: No
Distributions: 7.35% (year ending 30 June 2022)
Distribution Frequency: Quarterly
Investment Term: 7 years. This trust will rollover in the March quarter 2023.
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 10 of the PDS.
WALE: 6 years
Gearing: 38% (year ending 30 June 2022)
Tax Deferral: 100%
*Forecasts are estimates only and are not guaranteed to occur. Please refer to the Information Memorandum for details relating to forecasts.