Fund closed – next raising coming soon
MPF Diversified Fund No. 3
Fully subscribed – new raising coming soon
PROJECTED DISTRIBUTIONS PAID MONTHLY*
WEIGHTED AVERAGE LEASE EXPIRY OF 4 PROPERTIES
Invest from $50k
WITH DEPRECIATION AND TAX-ADVANTAGED INCOME DISTRIBUTED TO INVESTORS
*Forecast distributions are not promised nor guaranteed and are based upon a number of assumptions. Their achievement is subject to risks. The target return range is a target only, not a forecast and it might not be achieved. Please refer to the PDS for more information, noting the section on financial information and risks.
MPF Diversified Fund No.3 is the third edition of MPF’s highly popular Diversified Fund series. The Funds have offered investors the opportunity to invest in a portfolio of high-quality commercial properties diversified by state, asset class and number of tenants.
Keeping disciplined to its successful formula and strict criteria, the Diversified Fund No.3 will target five to eight assets offering both long-term income and potential for capital growth through strategic value-add opportunities.
Features of the Fund include:
- The Fund will hold a diversified portfolio of commercial assets across multiple sectors including industrial, medical, large format retail and/or more
- Targeting $60-$80m of commercial assets
- Strong lease covenants, targeting quality national, international, and listed tenants
- Fund distributions targeted at 7.5% p.a. paid monthly* (capital growth in addition)
- Depreciation benefits and tax advantaged income distributions to investors
- Professional and experienced managers
Disclaimer: The information provided on this page is general in nature and does not constitute investment advice or personal financial product advice. This information does not take into account your investment objectives, particular needs or financial situation. You should seek independent financial advice.
The content of this page does not constitute an offer or solicitation to subscribe for units in the Fund or an offer to buy or sell any financial product. Accordingly, reliance should not be placed on this document as the basis for making an investment, financial or other decision.
Past performance is not a reliable indicator of future performance. Performance comparisons are provided purely for information purposes only and should not be relied upon. The information included on this page may include information that is predictive in character which may be affected by inaccurate assumptions or by known or unknown risks and uncertainties and may differ materially from results ultimately achieved.
Whilst all care has been taken in preparation of this page, neither the Responsible Entity nor the Manager give any representation or warranty as to the reliability, completeness or accuracy of the information contained in this page. Neither the Responsible Entity nor the Manager accepts liability for any inaccurate, incomplete or omitted information of any kind or any losses caused by using this information.
You should obtain and carefully consider the Product Disclosure Statement for the Fund before making any decision about whether to acquire, or continue to hold, an interest in the Fund.
Applications for units in the Fund can only be made pursuant to the application form relevant to the Fund.
Fourth Asset – 28-34 Magnesium Drive, Crestmead QLD
- Leased to VISY – one of the world’s largest privately owned packaging and recycling companies
- The permitted use, significant investment in specialised plant and machinery and a requirement for an Environmental Authority Permit makes the facility harder to replace or replicate
- 3.3-year WALE – potential to add value through increasing the lease term
- Large 15,140sqm site with low site coverage (29%) and high underlying land value
- Buying below replacement cost
- Considered by us to be currently under rented, with potential for an uplift in rent, with a market rent review due in May 2021
- The lease in place has a comprehensive make good at lease expiry; so in the event the tenant does ever relocate, VISY is under lease obligations to reinstate and repair the building and remove all glass from the site
28 Magnesium Drive, Crestmead is a large glass processing and recycling facility featuring a generic design that would suit a number of users. The facility has a total gross lettable area of 4,039m2 and comprises 474m2 of office and amenities, a 3,565m2 high bay warehouse and approximately 5,000m2 of hardstand and surplus land. In addition, the warehouse has a minimum clearance of 8.4 meters and 5 gantry cranes ranging from 1 to 5-tonne capacity.
The facility processes approximately 150,000 tonnes of recycled glass per year processing furnace ready cullet for the container glass market. The cullet is then transported to the manufacturing facility in south Brisbane where it is used to make glass bottles for Australia’s leading breweries and brands. Due to the nature of the use, VISY (formally Owens-Illinois) have invested in state-of-the-art recycling plant and equipment with this being the only glass cullet processing and sorting facility in Queensland providing for the container glass market. This investment combined with the Environmental Authority Permit, which stays with the site, makes the tenant more likely to stay in the existing facility given the significant cost and difficulty in relocating.
The property is also being sold with an approved Development Permit to subdivide the existing land into two lots and retain the existing warehouse. The approval is valid until November 2024 and provides a further divestment option in the future if favourable.
The property is located within the Crestmead Industrial Estate, approximately 24 kilometres south of Brisbane’s CBD, and in one of south east Queensland’s most strategically significant industrial regions. The estate is ideally positioned 4km south of the Logan and Gateway Motorway Interchange, the main transport corridors servicing south-east Queensland. These arterial roads provide direct access to all major infrastructure including Brisbane and Ipswich CBD, Brisbane Port, airport, and Pacific Motorway to the Gold Coast.
The area is also set to benefit from the Park Ridge Connector Corridor which will provide a safer, more efficient route for heavy vehicles travelling into and out of the Crestmead Industrial Estate. This is an important future transport corridor to cater for the growth and development of the area and will improve network efficiency, increase traffic flow and reduce travel times.
The quality of this location is evident by the major occupiers in the area including; Metcash (QLD Distribution Centre), John Deere, Stramit, Titan Garages, Stratco, Qantas (Snap Fresh) and DHL to name a few.
Tenancy and Leasing Information
VISY was established in Melbourne in 1948 and has since grown to become one of the world’s largest privately owned packaging and recycling companies providing high quality, innovative and sustainable packaging products and solutions. In business for over 70 years, VISY operates from over 120 sites and has more than 5,000 employees across Australia, New Zealand and Thailand and trading offices across Asia, Europe and the USA.
In July 2020, VISY acquired the Australian and New Zealand glass manufacturing business of Owens Illinois (O-I) in a deal worth almost A$1 billion, creating VISY Glass. Post-acquisition, VISY would employ 7200 people and be the largest manufacturer of glass bottles and containers in Australia- New Zealand with factories in Sydney, Melbourne, Brisbane, Adelaide and Auckland.
|Address||28-34 Magnesium Drive, Crestmead QLD|
|Tenant||Brisbane Cullet Pty Ltd (VISY)|
Third Asset – 110 Castro Way, Derrimut, VIC
- A new 7-year lease on market terms
- The tenant operates a key logistics route between Melbourne and Adelaide with the business originally established in 1985
- The tenant has traded throughout COVID 19
- 3% fixed annual rent increases
- Modern generic improvements constructed in 2016, with limited exposure to capital expenditure
- High underlying land value
- Low site coverage – large hardstand and potential for future expansion
- Excellent access via major arterial roads, dual crossover, and full drive around capability
- Located in the industrial hub of Melbourne’s West with excellent accessibility and connectivity
This asset is a modern office and warehouse facility that was purpose built for the current tenant in 2016. The building is well suited for transport and logistics, a high growth sector with strong demand. Notwithstanding this, the improvements are generic in nature and would suit a wide range of potential industrial users.
The office component is spread over two levels and provides partitioned office accommodation with separate male, female and shower amenities and a lunchroom. At the rear of the office is two adjoining warehouses. Both warehouses are rectangular in shape, provide a minimum clearance of 9 metres, and are accessed via 8 at grade roller doors which also provide drive through access.
The property also features full drive around capability, significant hardstand at the rear and a truck weigh bridge along the southern elevation of the warehouse.
The property is situated in the Paramount Industrial Estate (Derrimut Industrial Precinct) which forms part of the industrial hub of Melbourne’s West approximately 16km from the Melbourne CBD. The area has attracted significant industrial development due to its strategic location to existing supply chains and easy access to major arterial road networks including the Western Ring Road, Western Freeway, Westgate Freeway, Princes Freeway and Ballarat Road. These networks provide direct access to Melbourne CBD, Melbourne Airport, Essendon Airport and the Port of Melbourne. The quality of this location is evident by the major occupiers in the area including Silk Logistics, AirRoad Direct and Volkswagen Group to name a few.
Tenancy and Leasing Information
The property is leased to, Goodwin Freight Services. The tenant has recently executed a new 7-year lease on market terms, commencing 1 January 2021 at a net passing rent of $342,000 per annum. The lease features strong 3% fixed rental increases and a 6-month bank guarantee or cash equivalent for security.
Goodwin Freight Services is a private company originally established in 1985. It’s core business is providing premium services in road express and supply chain services between Melbourne and Adelaide. The company has depots in both cities, employees 30 to 35 people and has well over 100 customers.
|Address||110 Castro Way, Derrimut VIC 3030|
|Land Area||10,600 sqm|
|Building Area||2,860 sqm|
|Tenant||Goodwin Freight Services|
Second Asset – Greenfields Commercial Centre, WA
- Convenience Retail and Medical Centre leased to multination tenants consisting of McDonald’s, Caltex and Genesis Care;
- Located on a prominent corner position adjacent to the Peel Health Campus;
- Weighted average lease expiry of 9.1 years (by income)
The second asset features three standalone buildings including a Caltex Service Station, McDonald’s Restaurant and a specialist cancer treatment centre leased to Genesis Care. Both the Caltex Service Station and McDonald’s were built in 2015 and are of a high standard consistent with today’s design for both users. The medical centre operated by Genesis Care is a state-of-the-art cancer treatment centre, which Genesis Care have been reported to invest millions of dollars into the facility which was completed in 2019. The centre features the latest technology in radiotherapy and chemotherapy for patients; their investment demonstrates Genesis Care’s long-term commitment to this facility.
The property is located in Greenfields, Western Australia and part of the greater City of Mandurah. The City of Mandurah is home to more than 86,000 people and is forecast by City of Mandurah to increase by 36,778 persons, an average annual change of 1.85%, between now and 2036. The micro location of the property is positioned on a prominent corner of Lakes Road, a major arterial route from the Kwinana Freeway to Pinjarra Road, and the main road to access Peel Health Campus. 35 Minilya Parkway is the closest convenience retail to this general hospital and benefits from approximately 540 staff and 43,252 people presenting to the emergency department in 2018-19. In addition, it is also strategically located between the 8.5 hectare Foundation Christian College, the local Primary School and large medical centre, ensuring strong daily traffic flow to the area.
|Tenancy and Leasing Information|
|Ampol Limited (ALD), formerly Caltex Australia, is an independent company and the nations leader in transport fuels. Ampol manages the country’s largest petrol and convenience network as well as refining, importing, and marketing fuels and lubricants. The group has a 120-year history, employs over 7,500 people, and is the largest transport fuel company listed on the Australian Securities Exchange with a market capitalisation of around $6.4 billion.|
|Genesis Care is a privately owned company, established in 2005, and is the largest provider of cancer care in Australia. Across the world, Genesis Care has more than 440 centres including, 14 in the UK, 21 in Spain, 300 in the USA and 36 in Australia. The group employs more than 5,000 people and every year, Genesis Care sees more than 400,000 people globally.|
|McDonald’s is a global fast-food company, founded in 1940 and has grown to more than 36,000 restaurants in over 119 countries. The company is listed on the New York Stock Exchange with a market capitalisation of around $158 billion. Today, there are over 970 McDonalds restaurants across Australia, employing more than 100,000 people across the restaurants and management offices.|
|Address||Greenfields Commercial Centre, 35 Minilya Parkway, Greenfields WA 6210|
|Land Area||8,801 sqm|
|Tenant||Caltex, McDonald’s and Genesis Care|
*Lettable area of Caltex and McDonald’s is based on the area of the land.
First Asset – Logistics & Distribution Facility, CANNING VALE (WA)
Setting the standard for the MPF Diversified Fund No.3, 13 Modal Crescent is a high-quality logistics and distribution facility and was the first asset added to the fund via an off-market transaction.
- 10 year WALE by income
- Located in Canning Vale, one of Perth’s premier industrial precincts
- Leading timber products manufacturing and distribution business
- Timberlink Australia which spans across Australia and New Zealand employing over 550 people nationwide
- Low site coverage (41%) with potential future expansion
- Income growth with 3% fixed increases
The property was purpose built by the tenant with improvements including 392m2 office and amenities, 5,085m2 warehouse and a 2,296m2 wrap around canopy. The property was strategically selected due to the low site coverage, modern and generic design, high ceiling heights, fully sprinklered warehouse, ample hardstand, and full drive around access for prime mover trucks. We strongly believe these features make the asset both highly desirable for the current tenant and, should the existing tenant vacate, have a wide appeal to other prospective users.
The property is in the prime industrial precinct of Canning Vale, approximately 13km south east of the Perth CBD. The area is very well located with direct access off Roe Highway, the main freight route between Fremantle Port and Perth Airport, and allows heavy vehicles access up to RAV-4.
Tenancy and Leasing Information
The property is leased to a national tenant, Timberlink Australia Pty Ltd, who are a major wholesaler of timber building materials in Australia, including a key supplier to Bunnings. The lease commenced on 1 November 2019 for a term of 11-years, a net passing rent of $755,000 per annum, strong 3% fixed rental increase and a 6-month bank guarantee for security.
Timberlink is a leading timber product manufacturing and distribution business across Australia and New Zealand. The business is owned by New Forests, a sustainable real assets investment manager of $5 bn in assets. Timberlink is the supply chain for New Forests’ Australian operated plantations and employs over 550 people nationwide. They have three state of the art sawmill facilities, processing over one million tonnes of plantation log each year. These facilities cut a range of fit-for-purpose indoor and outdoor plantation pine building products with quality wood chip residue, as well as value add processing with treatment. The manufacturing facilities are supported by a comprehensive warehouse distribution network, with centres in Melbourne, Adelaide, Perth, Sydney, and Tasmania, dispatching around 65,000 packs of timber each year.
|Address||13 Modal Crescent, Canning Vale WA 6155|
|Land Area||18,771 sqm|
|Building Area||7,773 sqm (including canopy)|
|Tenant||Timberlink Australia Pty Ltd|
Register interest for future raisings
Units in this Fund are issued by Mair Property Securities Ltd ACN 091 623 862 AFSL number 238386 (Responsible Entity) as responsible entity of the MPF Diversified Fund No.3 (Fund). Mair Property Funds Limited ACN 151 957 676 is the investment manager of the Fund (Manager).
Previous Diversified Funds
MPS Diversified Property Trust
(closed Oct 2017)
MPF Diversified Property Trust No.2
(closed Dec 2019)