MPF Diversified Fund No.2 successfully closes
The latest opportunity in MPF Diversified Fund No. 2 has successfully closed following high levels of interest from investors. The fund currently comprises three well-leased commercial assets, and is structured to acquire a diverse range of commercial properties across multiple states, including industrial facilities, large format retail, offices and medical centres.
The fund follows the success of our raising for MPS Diversified Property Trust No.1, which closed in September 2017 after unprecedented levels of investor demand.
Mair Property Fund’s Managing Director, David Ellwood, says the success of these funds provides a strong reflection of the growing demand for commercial property trusts amongst investors.
“We are seeing increased enquiries from savvy investors looking to diversify their property investment portfolio into different asset types and locations”
“The lower capital required to invest in commercial property trusts, as well as the higher yields typically associated with commercial assets, are providing a strong incentive for investors looking to reduce their risk whilst benefiting from a passive income stream,” he said.
MPF Diversified Fund No.2 is projecting initial income distributions of 7.5% for the first year, with average projected distributions forecasted at 8% per annum or more over a five-year period.
To commence the portfolio, we have purchased three assets, including a large format retail asset tenanted by a national liquor franchise, a new industrial facility based in Queensland, and a Brisbane-based medical laboratory tenanted to specialised medical equipment manufacturer, Aim Lab Automation Technologies.
The assets are 100% leased and offer a WALE of seven years, with minimum investment for the fund starting at $50,000.
Mr Ellwood says he is confident the assets offer strong criteria for long-term success.
“Our asset selection process has been heavily focused around targeting stable, high-quality assets with long-term potential for income growth”
“With strong tenancies in place across the first three properties, as well as the diversity of the tenancy mix and asset types, we are confident these properties are well-positioned to perform and deliver strong investment returns,” he said.
We are now actively seeking further assets to incorporate into the fund, with the aim to build a portfolio up to a total value of circa $60M.
If you are interested in learning more about future investment opportunities within this fund, visit www.mair.com.au/diversified