MPF Diversified Fund No. 2
This investment opportunity is now closed
Current distributions paid monthly
8 Quality Assets
Across 4 states and multiple sectors
Invest from $50k
With depreciation benefits and tax-advantaged income distributed to investors
$60 Million Diversified Property Fund
MPF Diversified Fund No.2 was established by Mair Property Funds to offer investors the unique opportunity to gain exposure to a diverse portfolio of commercial property spanning across the industrial, office, retail and medical sectors.
The fund targets a select group of assets offering both secure long-term income and potential for enhanced capital returns through strategic value-add opportunities. Boasting a strong track record of consistent investor returns, the Fund has acquired six high-quality assets since its fruition, making it one of Mair Property Funds most popular and prolific investment offerings to date.
Following on from this success, we are excited to offer investors a final opportunity to participate in the Fund.
The Fund currently holds six assets and intend to purchase two final assets, 6-8 Compark Circuit, Mulgrave VIC and 1162 Hay Street, West Perth. These two high quality office assets add significant diversity to the fund and bring opportunities for growth. Following the acquisition of the final assets, the Fund will consist of eight assets, spread across four Australian states and have a mix of office, industrial, retail and medical.
Subject to the settlement of both assets in April 2020, this will close out the fund with a well-balanced diversified commercial property portfolio with a total value of $60.56 million, in line with the portfolio target of circa $60 million.
Features of the trust include:
- The trust holds a diversified portfolio of commercial assets providing reliable income.
- Asset diversification across location, industry and tenant business sectors.
- Strong lease covenants.
- Assets in major capital cities.
- Trust distributions currently at 7.5% p.a. paid monthly (capital growth in addition).
- Depreciation benefits and tax advantaged income distributions to investors.
- Professional and experienced managers.
- Invest from $50,000.
|EOIs||Offer closes 28th Mar 2020|
|Deposit||10% required with application|
|Settlement Date||April 2020 to allow execution of leasing strategy|
8th (Final) Asset – West Perth, WA
This asset is an A-grade commercial office building in a prime location with recent refurbishment and an established long-term tenant.
The property is located in West Perth, the largest office market outside of Perth CBD, and is easily accessible by Perth’s Freeway, Bus and Train networks. More specifically, it is strategically located on the corner of Hay and Havelock Street, benefitting from exposure to over 10,000 cars per day, and is within the “core” eastern precinct of West Perth with good proximity to Perth CBD.
The whole building is currently leased to EBM Insurance, one of the largest residential insurance brokers in Australia, who specifically selected the current building on its specification, proximity to the city and ability to accommodate the parking requirements of their Brokers. In addition, the tenant has incurred significant fitout cost and MPF are confident that they have committed to the building long term and will continue to occupy the building beyond their current expiry in 2023.
|Address||1162 Hay Street, West Perth WA 6005|
|Tenant||Elkington Bishop Molineaux (EBM) Insurance Brokers|
7th Asset – Mulgrave, VIC
This modern multi-level office building with a 4.5 NABERS rating located in the established and popular commercial office precinct of Mulgrave with strong and diverse network of businesses in robust sectors such as health, education, technology and much more.
The property has floor plates which allow it to be split into two tenancies providing future flexibility and also has an attractively high car park ratio of 4.4 bays per 100m2. It is currently partially leased to a multi-national tenant, who has just signed a new 5 yr lease at market rate.
In addition, the vendor has agreed to undertake approximately $300,000 in capital expenditure upgrading both lobby and reception areas which will further improve the appeal of the asset.
The fund had the advantage of purchasing the property at a lower price point as it provided a softer yield with a current vacancy within the building, however it is expected that the excellent features of the building coupled with a 3.3% Melbourne CBD vacancy rate, it will be lease up over the short term to add-value and income to the fund.
|Address||6 – 8 Compark Circuit, Mulgrave, VIC 3170|
|Building Area||3,153 sqm|
|Tenant||Device Technologies (Ground floor)|
First Asset – Falcon, WA
Purchased off-market, this facility was built in 2012 for retail showroom liquor sales. The premises are located next to the popular Cobblers Tavern and across the road from Miami Plaza Shopping Centre.
The property is currently the only bulk retail liquor sales licence within a 10km radius. It is expected that tightening liquor licence changes will suppress further competition on at least the southern area of Avocet Island. Applications have been rejected on numerous occasions to add a small BWS in the Miami Plaza Shopping Centre.
Liqorland, First Choice Liquor and Vintage Cellars are wholly owned subsidiaries of Coles Group and comprise a national network of 865 liquor stores and 89 hotel. First Choice Liquor is the large format destination retail liquor flagship with 97 stores nationally.
|Address||629 Old Coast Road, Falcon, WA|
|Building Area||1,234 sqm|
|Tenant||First Choice (Wesfarmers)|
Second Asset – Crestmead, QLD
A brand new industrial facility leased to a leading importer wholesaler of solar panels who are part of China’s Golden Concord Group (GCL).
Located in Crestmead the heart of the growth corridor in Brisbane’s Southside. In terms of access, the area enjoys proximity to the Logan and Gateway Motorways. These two main arterials access South East Queensland’s greater metro area, including the Western Corridor, Gold Coast and the Port of Brisbane.
The tenant, One Stop Warehouse are a leading importer of solar panels, inverters and battery systems for the residential and commercial markets. They are one of the largest wholesale suppliers in the Australia market. One Stop Warehouse has warehouses in five capital cities and this property in Crestmead will serve as their national headquarters. One Stop Warehouse was recently brought out by 51% ownership to GCL System Integration (GCL-SI). They feature on the Shenzhen Stock Exchange with a market capitalisation of $4.86B (AUD) at 10 July 2018.
|Address||55 Rai Drive, Crestmead, QLD|
|Building Area||3,573 sqm|
|Tenant||One World (Part of the GCL Group)|
Third Asset – Virginia, QLD
This leased investment is wholly occupied by specialised medical equipment manufacturer Aim Lab Automation Technologies. The tenant has been in occupation from 2014 and have just renewed for a brand new 6 x 6 year lease until late July 2024.
This modern tilt panel building contains a high office and medical laboratory component, with high bay warehousing at the rear. The property affords two street frontage and access from both Bilsen Road and Lisgar Street.
Aim Labs manufacture specialised equipment that assist industrial, environmental and pathology centres with over 10,000 installations across the globe. They are recognised internationally as an innovator in the field of laboratory automation and have forecast growth that is expected to see them doubling their production in the coming years from this location.
|Address||15 Lisgar Street, Virginia, QLD|
|Land Area||3,291 sqm|
|Building Area||2,818 sqm|
|Tenant||Aim Lab Automation Technologies|
Fourth Asset – Welshpool, WA
The property is a modern self-contained industrial building in a good location in the highly regarded Welshpool industrial zone with close access to the Roe and Tonkin Highway arterial roads. The premises are leased to Capital S.M.A.R.T. Repairs who made extensive modifications of circa $500k to the premises to suit their workflow and systems in 2015.
The business operates well from this location and have indicated a preference to remain for the long term. The business is owned by Suncorp and specialises in low to medium collision damage repairs to vehicles. There are 40 plus of these centres in Australia and operate as very professional centres that are immaculately presented. The tenant undertook a specialist fitout in late 2015 when they occupied the premises which included extraction equipment and upgrades to the plant and fitout. We believe that they are highly likely to renew the lease at expiry in 2021.
An independent valuation has been undertaken on behalf of the MPF Diversified Fund 2 at $4.65million in 2019.
|Address||12 Thorpe Close, Welshpool, WA|
|Land Area||5,494 sqm|
|Building Area||3,085 sqm|
|Tenant||Capital S.M.A.R.T Repairs|
Fifth Asset – Henderson, WA
This modern office/warehouse facility is located in the Australian Marine Complex in Henderson. The property was constructed for the current tenant and is of generous specification including fully sprinklered warehouse and full clear span truss heights above 8m. The built ratio to land is only 32% offering planned potential for future expansion of the warehouse.
The premises overall are smartly presented and are fully occupied by SINWA as their Australian HQ. SINWA is a leading marine, offshore supply and logistics group. SINWA supply many of the major mining, oil and gas companies based offshore with all marine requirements. The property is used as both the logistics office and storage and distribution warehousing, including a cold store for food provisions. The lease terms require the tenant to fully maintain the premises including any capital replacement of the cold store plant and equipment.
|Address||39 Jessie Lee Street, Henderson, WA|
|Land Area||11,541 sqm|
|Building Area||3,673 sqm|
Sixth Asset – Pooraka, SA
The asset comprises of a single level office accommodation at the front, and warehouse with 2 new 10T and 2 x 5T gantry cranes behind. The building was constructed in approximately 1999, and the tenant has replaced all skylight fibreglass sheeting on the roof., adding to the overall good condition of its presentation.
The property is located in the suburb of Pooraka, approximately 11km north of the Adelaide CBD and 10km east of Le Fevre Peninsula and Osborne Naval Shipbuilding Precinct.
More specifically, it is located on the corner of Williams Circuit and Diagonal Road, and benefits from its prominent location, two street frontages which provide multiple access points, and has significant bitumen parking available.
The property was originally leased to Interlloy Pty Ltd in February 2012; Interlloy is Australia’s lead supplier of engineering steels and alloys to engineering machine shops both nationally and internationally and has become the major supplier of special steels to the general and heavy engineering industries, toolmaking, mining, gas & oil fields, automotive, manufacturing, petrochemical, pump, power generation and transport industries.
|Address||1 Williams Circuit, Pooraka SA 5095|
|Land Area||10,320 sqm|
|Building Area||4,385 sqm|
|Tenant||Interlloy Pty Ltd|