CASE STUDIES
MPG BW Port Macquarie Trust – 2018
Deal origination and negotiation, Project Control Meetings, Due Diligence, equity raising and asset management.
- This Trust provided an opportunity for investors to invest in a brand new Bunnings Warehouse property located in Port Macquarie NSW
- Purchase Price $44.65 million
SPP was involved in the following tasks:
- Sourcing and negotiating the acquisition of the land with an attractive lease term with Bunnings
(initial term of 12 years with 48 years of options); - Attending Project Control Meetings in Port Macquarie during construction phase;
- Negotiating Bank facilities for construction funding and long-term debt facility;
- Issuing Information Memorandum and raising equity from Investors
Key Features
- Exceptional site which was completed in March 2019
- Forecast first trading year distribution to investors – 6.1% p.a. (with Bunnings also agreeing to fixed annual rental growth through 2.5% annual rent increases)
- Tax deferral of 100% for first 4 years
- Good potential for capital price appreciation
- Stamp duty savings of c.$1.8m
- Reduced Capital Volatility – Australian direct property has historically experienced lower volatility than listed Australian shares
- Defined exit strategy
MPG Tweed Hub Trust – 2018
Deal origination and negotiation, due diligence. equity raising and asset management
SPP was involved in the following tasks:
- Securing the acquisition of the property
- Undertaking due diligence on the property and the tenancies;
- Negotiating Bank facilities;
- Preparing Information Memorandum;
- Regular Inspections
- Issuing Information Memorandum and raising equity from Investors.
Key features
- An established convenience retail centre anchored by 1st Choice Liquor, The Good Guys, McDonalds, Hungry Jacks, 7-Eleven and other large format retailers located in Tweed Heads, NSW
- Purchase Price $40.075 million