Mair Property Funds is a Western Australian owned company specialising in the acquisitions and management of commercial property investment though unlisted property trusts:
A good investment strategy means above-average returns, capital security and growth.
We secure superior investments using our thorough investment philosophy. We then actively manage the properties on behalf of our investors to ensure property performance and lease compliance, keeping investors informed along the way.
Mair Property Funds manages more than $183m of commercial properties, holding assets over 17 trusts and syndicates. We specialise in the acquisition, management and disposal of commercial property and the establishment and operation of unlisted property trusts.
Investors rely on our proven approach, passion and expertise to buy strong investment properties at the right price that will deliver secure income as well as capital growth. MPF’s investment portfolio includes a healthy mix of property sectors that provide diversified income returns. High yielding industrial assets comprise 33% of the portfolio, a good mix of retail assets, with about 4% attributed to the property development sector.
Mair Property Funds manages more than $208m of commercial property on behalf of its investors, comprising 40 properties and more than 90 quality tenants. We apply a strong discipline to tenant strategy, making sure we monitor and pay attention to key industry trends and direction to ensure our tenants can support and align with both short-term requirements like rent accountability, and long-term performance objectives.
The MPS Diversified Property Trust has been established to offer retail investors a sustainable income with potential to participate in future capital growth.
The Trust has now entered into a conditional contract to acquire its fifth and sixth assets, in Ravenhall and Altona, Victoria.
Both properties are modern industrial facilities and are 100% leased by long-term tenants.
The Trust also owns the property located at 42 Northey Road, Lynbrook, Victoria (First Asset), 923 Cockburn Road, Henderson, Western Australia (Second Asset), 69 Maud Street, Maroochydore, Queensland (Third Asset), and the Broadway Medical Centre, Ellenbrook, Western Australia (Fourth Asset).
Capital raising for the previous acquisitions was strongly supported by investors and closed oversubscribed.
Distributions are being made at 8% pa of invested equity.
For a copy of the Product Disclosure Statement, or if you have any questions or would like to discuss other opportunities please do not hesitate to call the office on (08) 9321 5566, or contact:
Mair Property Funds purchased the property located at 4 and 5 – 9 Hobbs Court, Rowville, Victoria, on 13 April 2015. Built to a high quality of accommodation the premises has a net lettable area of 4,700m2 on a 1Ha site.
The aim of the fund is to deliver stable, growing return and capital security for investors. The MPS Rowville Property Trust represents a unique opportunity to invest into a property trust that will provide a strong rate of return driven by income secured by a long term lease to a high quality tenant, and a long term prospects for capital growth.
The property was selected due to its multinational tenant, modern recently constructed quality buildings and excellent market returns. A decision to buy followed extensive market analysis and research on the Victoria industrial market which has performed consistently over a long period but is tightly held in the south eastern Melbourne corridor.
MPS Rowville Property Trust is an unregistered managed investment scheme, formed to enable Investors to gain exposure to a direct real property investment in 4 & 5-9 Hobbs Court, Rowville, Victoria.
Contact us below if you are interested to learn more about this trust.
Mair Property Funds are pleased to announce the launch of the MPF Retail Fund.
An MPF Key Sector Fund, the aim of the fund is to provide retail investors with strong and secure investment returns from a quality selection of retail centres with high potential for capital growth.
MPF has recently secured, under contract, a quality shopping centre in one of the fastest growing areas of South East Queensland, as the initial asset of the fund. The property is in a prominent location on a major arterial route, in an area with a strong demographic profile, and is less than 1km from the Petrie University precinct.
In 2009 MPF purchased the Beldon Shopping Centre in the MPS Unit Trust No 2 for $8,400,000. The centre was purchased due to its good suburban location, small number of tenancies, backed by a Woolworths lease. It was envisaged that the centre could be improved and leases extended.
Following two years of negotiations MPF secured Woolworths on a new 20 year lease. The new agreement included a full refurbishment of their store and an upgrade of the centres mall. The Landlords costs for its share in the works, which were completed in 2015 was circa $4,500,000 funded via an increased debt facility.
The centre was recently revalued at $18,900,000 reflecting a significant uplift in value for investors.
MPF is actively searching for retail shopping centre properties to purchase.
Should you wish to discuss this opportunity further or request a full Product Disclosure Statement please do not hesitate to or call the office (08) 9321 5566 or contact:
The Midland Central Property Trust was established in 2012 to purchase the Midland Central Shopping Centre in the heart of Midland, WA. The centre consists of three strong retail tenants: IGA, Dan Murphy’s and Optimal Pharmacy who all have long leases.
Purchased for $12,300,000 the centre has experienced strong growth with distributions to unit holders now being paid at 12% pa based on the initial equity invested.
The trust is a wholesale fund for an eight year term and geared at 44%.
Contact us below if you are interested to learn more about this trust.
Located in the emerging Industrial sector of Forrestdale, 41 Hensbrook Loop was purchased in January 2014 to establish a new wholesale trust.
The building had just been developed for COR Engineering who provide radiator services to large mining and other vehicles. The investment offered an initial yield of 8% with the prospects of good growth over the 10 year lease term.
Another benefit to investors is the ability to obtain depreciation benefits due to the new construction thus reducing tax payable.
Contact us below if you are interested to learn more about this trust.
Across all MPF syndicates and trusts, our portfolio of commercial properties has achieved an average internal rate of return of 14.2% p.a. (income plus capital growth). Excluding capital gain, current income distributions to investors across all funds under management is 11.8% on the initial investment. Average annual capital growth since June 2002 is 5.4% with a total growth of 46% of initial equity invested.
Over the last 10 years, MPF has delivered strong and sustainable returns that outperform major benchmark indices. We contribute to the Investment Property Databank, which enables our performance to be clearly measured. This reveals the superior performance of our returns from commercial property when compared with other asset classes, as well as unlisted and listed property trusts and equities.
MPF has established 17 commercial property syndicates and trusts each owning between one and four assets.
Since gaining our AFSL licence in 2002 Mair Property Funds has returned to investors on average across all trusts and syndicates an Internal Rate of Return of 14.2% as at year ending 30 June 2016.
Yes, our Senior Managers and Directors have experience in all property sectors, including Office, Retail and Industrial property as well as various specialist areas, such as medical centres.
At MPF our primary focus is to purchase quality commercial properties capable of providing secure rental income for investors. In our constant search for new opportunities we do consider development opportunities but mainly on a pre-leased or fund through basis.
The trustee’s role is to ensure investor’s interests are being protected at all times. In general terms, the trustee’s role is to separately hold all the assets, including the title deed of the property and bank accounts of the trust, on behalf of the investors.
The Responsible Entity is granted all powers in respect of the Trust that could be exercised by a natural person or a body corporate as if it were the absolute and beneficial owner of the properties of the Trust (and any other assets of the Trust). The Responsible Entity may appoint an agent to hold the title to the Properties (and any other assets of the Trust) or otherwise carry out any functions of the Trust.
The Constitution is the document that governs the relationship between the Investors and the Responsible Entity. It regulates the rights and obligations of the Investors and the Responsible Entity and sets out the powers of the Responsible Entity in operating the Trust.
As required by law, the Trust has a Compliance Plan that has been lodged with ASIC and sets out measures that the Responsible Entity shall apply in operating the Trust to ensure compliance with the Corporations Act and the Constitution.
The Compliance Committee is established to monitor compliance by the Responsible Entity with the Compliance Plan and report to the Responsible Entity on a regular basis regarding its compliance with the Compliance Plan, the Corporations Act and the Constitution.
The Compliance Committee is to report to the ASIC if the Responsible Entity does not address any issues raised in an adverse report issued to the Responsible Entity. The Compliance Committee is comprised of 3 members, with two thirds of the committee being “external” under section 601JB(2) of the Corporations Act.
Each Investor becomes a unit holder in the trust. Units are issued in proportion to the amount invested relative to the total net asset value of the trust’s assets. As a result you effectively become a part-owner of the Property.
The assets of a Mair trust are generally physical property of a commercial nature. The Offer Document specifically details the assets and/or intended assets.
Issues relating to a Trust can be voted on by Investors as provided for in the Constitution. Voting rights will be proportional to the amount of each Investor’s interest.
By completing and sending an Application Form to the Manager, you are agreeing to be bound by the Constitution and the acknowledgements contained within the Offer Document.
You may either:
Yes, complying and self managed superannuation funds may invest in our property trusts.
The Responsible Entity arranges for income from the Properties (rent) to be collected and pays it into the proceeds fund. Out of the proceeds fund, the Responsible Entity pays all costs, charges, expenses and outgoings it properly incurs. These include the Responsible Entity’s and Manager’s fees, property outgoings, establishment costs, administration and audit costs, Custodian and Compliance Committee fees, bank fees, government charges and taxes.
The Constitution provides that the Responsible Entity will (if appropriate) make distributions out of the net balance in the proceeds fund every quarter. The Responsible Entity determines the amount to be distributed. Any net income (after expenses) received into the proceeds fund that are not distributed to investors, remain the property of the Trust (and therefore unit holders/investors).
Generally, a portion of the distributed income you receive will be tax advantaged, resulting in less income tax being payable on that distribution in the year it is received.
Tax advantaged or tax deferred income is derived from property trust distributions, generally as a result of building allowances and depreciation allowances and the amortisation of the costs of borrowing. The amount of tax deferred distributions received by investors varies depending on the circumstances of the trust. No income tax is payable by investors on that proportion of the distribution received that is attributed to tax deferred income.
However the tax deferred income received reduces the cost base of an investor’s original investment (purely from a tax accounting perspective, it does not reduce the actual dollar amount invested) in the trust. This results in an increase in the amount of the capital gain on disposal of that investment. But if the relevant asset is held for more than 12 months an investor is generally entitled to a discount on the capital gains tax and for an individual investor only 50% of the capital gain is taxed at the investor’s marginal tax rate.
Tax deferral has two clear benefits. Firstly it provides greater cash flow during the investment term as a portion of the income received is not taxable in that year. Secondly at the end of the investment term, provided the investment is held for longer than 12 months, discounted capital gains applies, reducing the tax payable by up to 50%.
Essentially our property trusts are illiquid and invested funds are not returned until the property is/are sold. Investors may exit earlier by the independent sale of their Units to a third party and you can contact the Manager to assist with the relevant documentation and information in this regard.
Borrowing or gearing into an investment is a long held strategy that can significantly enhance the return on that investment. This is because the borrowed amount generally remains the same (assuming interest only payments), whilst the property value is likely to increase over time. However, the reverse can also apply should the property value significantly decrease, in which case the losses can be magnified.
A sensible borrowing policy or gearing level helps to manage any downside risk.
Unlike an investor borrowing in their own name to invest, our Trusts use non-recourse borrowings to limit any liability of investors to their initial investment amount only.
The levels of approved borrowing may vary in each trust however our policy is to only borrow a maximum of 50% of the property value.
All borrowings on behalf of a Trust are secured solely against Trust property (non-recourse to investors). This means that you have no financial or other commitment beyond your investment into that trust.
A gearing ratio indicates the extent to which the Trusts assets are funded by external liabilities (debt).
An Interest Cover Ratio (ICR) is a measure that shows how many times the Trusts earnings can meet the Trusts interest expense each year. For example if a trust has an income of $300,000 and an annual interest payment of $100,000 then its ICR is 3:1.
You will be kept aware of the status of your Investment with quarterly income statements and other periodic reports.
All investors in each Trust receive an annual tax statement within three months of the end of each financial year.
All investors in each Trust will receive an Annual Report, providing information on the Trusts’ activities for that year.
We also produce periodic newsletters providing a variety of information including trust updates, property market information and new investment offerings. Information held on our website is also frequently updated and we recommend investors and potential investors review the website content on a regular basis.
It is important that you inform us of any changes to the details you originally submitted on the Application Form when investing. Any such change must be notified in writing and signed by all parties who signed the original Application Form. In order to assist with this process, refer to the Change of Investor Details form on our website.
DAMIAN COLLINS
CHAIRMAN
JOHN CHRISTIAN MAIR
DIRECTOR
JENNIFER WAKEMAN
DIRECTOR
DAVID ELLWOOD
MANAGING DIRECTOR
SAUNDRA WEERATUNGE
COMPANY SECRETARY
PETER MELLING
ACQUISITIONS MANAGER
ALEX LAMBERT
ASSET MANAGER
EMMA EVERETT
STRATEGIC ALLIANCES MANAGER
Jennifer is the co-founder and general manager of Momentum Wealth, a Perth-based property investment consultancy. She has more than 18 years’ experience working across a diverse range of industries, including banking, communications, agriculture and property. Jennifer joined the board of MPFL on 1 July 2015 following the merger of the business with Momentum Wealth. She is qualified with a master of business administration (MBA), a bachelor of communications (publish relations) and a diploma of property services (agency management).
Damian is the founder and managing director of Momentum Wealth, a Perth-based property investment consultancy. Damian joined the board of MPFL on 1 July 2015 following the merger of the business with Momentum Wealth. He has more than 20 years’ experience in the property and finance industries and brings extensive vision to MPFL. Damian holds a graduate diploma of property and a bachelor of business. He is also a member of the Institute of Chartered Accountants in Australia and the Financial Services Institute of Australasia.
Established the real estate business known as Mair & Co in 1966. John has specialised in property investment, development and management. Since 1966 John has been involved with the establishment of over 35 private syndicates and unit trusts to develop and/or invest in property. John has held a Real Estate and Business Agent’s Licence in Western Australia for over 30 years and holds an Auctioneer’s Licence. John is a member of the Real Estate Institute of Western Australia.
Experienced professional in the real estate investment Industry. David has held many senior management positions with major real estate companies, fund managers and large corporate investors. Over his 25 working years he has lead many investment projects and successfully completed a long list of property transactions. He holds a Bachelor of Science Degree and is a Certified Asset Manager (Property Council).
Saundra has held these positions within MPFL since August 2004. She is responsible for all accounting and financial matters of the Group and is also the appointed compliance officer. Saundra is a member of CPA (Australia), CIMA (Chartered Institute of Management Accountants -UK), CSA (Chartered Secretaries, Australia) and holds a Graduate Certificate of Business (Professional Accounting) from Edith Cowan University, Western Australia.
Peter is responsible for the implementation of the acquisition strategy and ensuring maximum returns for investors. Prior to joining Mair Property Funds Ltd, Peter spent several years advising Local and State Government agencies on acquisition and portfolio strategies across Australia. Prior to this he has also managed the Queensland portfolio for Goodman. He holds a Bachelor of Property Economics and Masters of Applied Finance from Queensland University of Technology and is an Associate of the Australian Property Institute and sits on the Industrial Committee for the Property Council.
Alex is responsible for the asset management of the trusts and syndicates which are held within MPF’s property portfolio. Alex has fourteen years’ experience in the property industry in both the U.K and Australia. He has held senior positions within private property portfolio’s in the U.K and in one of the largest property service providers. Alex has diverse experience in asset management, urban master-planning, investment and sales and leasing. Alex holds a Bachelor of Science in Real Estate Management and is a Member of the Royal Institute of Chartered Surveyors.
Emma has more than ten years’ experience in the property industry, serving in a diverse range of roles and more recently as manager of strategic alliances. Emma brings years of experience working closely with external advisors and their clients to cater products, services and information to sophisticated and high net worth individuals, and has built strong relationships within a number of professional industries. BA (Asian Studies), Grad Cert (HRM), Cert IV in Property Services, Cert IV TAE
T: 08 9321 5566
E: info@mair.com.au
