The MPG KM Trust provides investors with an opportunity to invest in a popular waterfront shopping centre, anchored by national retailer Kmart, located on the mid-northern coast of NSW.
Year started: 2015
Total Assets: $36.2 million
Assets: Kmart Port Macquarie
100% of the rent payable by Kmart on a long term lease
A lease to Kmart Australia Limited (Part of ASX listed Wesfarmers Group Ltd) has been secured for a term of 12 years (plus six additional five-year options). This agreement also covers the rent for the additional 1,089 sqm of specialty stores.
Attractive regular tax-advantaged returns
Forecast initial cash yield of 5.50% pa* until the date of Practical Completion of the Property and 8.10% pa* thereafter to be paid quarterly. As this Property will be brand new, depreciation and building allowances mean a high proportion of this income will be tax-advantaged. Details on page 19 of the Information Memorandum.
Potential for capital growth
Long term population growth forecast for the region and fixed rental growth augurs well for future capital price appreciation. Detailed on page 5.
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 12 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: $1.48 (30 June 2023)
Minimum investment: $500,000 or $100,000 from approved sophisticated investors
Dividend reinvestment plan: No
Distributions: 8.00% for year ended 30 June 2022
Distribution Frequency: Quarterly
Investment Term: This trust will rollover in the December quarter 2022.
Liquidity: The Trustee does not expect the Trust will be liquid during the initial term. Unitholders will only have the right to sell any Units they hold subject to approval by the Trustee. The Units will not be listed on any stock exchange and may be redeemed or repurchased by the Trustee, at the Trustee’s sole discretion. See page 12 of the Information Memorandum for more details.
WALE: 6.75 years
Tax Deferral: 75%
*Forecasts are estimates only and are not guaranteed to occur. Please refer to the Information Memorandum for details relating to forecasts.