Boutique manager launches new offering
Boutique property manager MPG Funds Management has launched a new property trust investing in Victorian property.
The MPG Enterprise Property Trust will seek to raise $17 million from investors to buy $62 million of property and an 18 per cent investment in the fund manager’s Bulky Goods Retail Trust.
The fund manager’s parent, the McMullin Group, will hold a 10 per cent stake in the trust to ensure its interests are aligned with investors, MPG chairman Trevor Gorman said.
“MPG will also seek to expand the portfolio by investing in commercial properties valued in the range of $5 million to $50 million, which we believe are often overlooked by the larger institutional investors and out of reach of most individual property investors,” he said.
“Also, being domestically focused, the trust offers low volatility and is not exposed to foreign currency and interest rate risks associated with many international-based property investments.”
The largest property the trust is buying is a bulky goods centre anchored by Bunnings in the Victorian coastal town of Warrnambool.
The trust is also buying a 10,500 square metre industrial unit being built for Stanley Tools in Melbourne’s northern suburbs, a regional shopping centre in Melbourne’s southeast and two commercial properties in Epping.
The trust will be open-ended and has an initial cash yield of 8.05 per cent, Gorman said.
“All the properties have been carefully selected for their potential for capital growth,” he said.
“They are new or near new and are located in areas targeted for infrastructure improvements and population growth areas.”
MPG’s existing trust, investing in retail bulky goods outlets, has delivered a total return of 28.5 per cent for 2007.
The boutique fund manager was formed in 2002 and now has more than $100 million in funds under management.
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