Boutique manager makes property trust play
Melbourne-based boutique MPG Funds Management has launched a $48.8 million retail property trust.
The fund manager is hoping to raise $15.26 million from investors to buy two new bulky goods centres and a smaller retail trade centre in Victoria.
The new trust is buying three retail properties from property developer McMullin Group which is associated with MPG. The developer is contributing $7.04 million to the trust which underwrites the offer.
MPG chairman Trevor Gorman said McMullin will retain a stake in the trust ensuring the interests of the developer and the investor are aligned.
“MPG’s broad philosophy is to buy well, and use a careful mix of equity and debt to maximise investor returns which are forecast to be 8.5 per cent on completion of the properties,” he said.
“Each property is located within an area experiencing sound economic and population growth and they are situated near other major retail centres.”
The first bulky goods centre is being built at Chirnside Park in Melbourne’s growing south eastern suburbs. It will be completed in February next year and will consist of 13,750 sq m of retail space and is next door to an existing Bunnings warehouse.
The second bulky goods centre is at Mildura and will consist of 15,200 sq m of retail space located again next to a Bunnings warehouse. It too is expected to be completed in February next year.
The third property in the trust is the 1,700 sq m Epping Trade Centre in Melbourne’s northern suburbs.
The MPG Bulky Goods Retail Trust will have a life of seven years.
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