CASE STUDIES

MPGBW Rockhampton Trust – 2019

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
  • Issuing Information Memorandum and raising equity

Key features:

  • Forecast year 1 cash return of 6.5% p.a. paid quarterly.
  • High levels of tax deferred income in initial years.
  • Only Bunnings Warehouse servicing expansive catchment area.
  • The Bunnings Centre opened in February 2018. Bunnings is a subsidiary of ASX-listed Wesfarmers Ltd and it’s lease has been well secured for an initial term of 12 years until January 2030 (plus eight additional 6 year options) – 60 years in total with the options.
  • Fixed annual rental growth from Bunnings of 2.5% p.a.
  • A high proportion of the income will be tax advantaged due to depreciation and building allowances.
  • Bank debt facility-secured and fixed for 5 years (non-recourse to investors)

 

 

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