MPF Diversified Fund No.3

Fully Subscribed

7.5% per annum*

PROJECTED
DISTRIBUTIONS PAID
MONTHLY*

6.3 year WALE

WEIGHTED AVERAGE
LEASE EXPIRY OF 7
PROPERTIES

$50k min investment

WITH DEPRECIATION &
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 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.

Final raising for Diversified Property Fund No.3

MPF Diversified Fund No.3 is the third edition of MPF’s highly popular Diversified Fund series. These Funds offer investors the opportunity to invest in a portfolio of high-quality commercial properties diversified by state, asset class and number of tenants.

The MPF Diversified No.3 Fund has acquired $52 million of commercial property since inception in September 2020.

Under this final raise the Fund is targeting $75m - $90m of assets, diversification through 3 states, and multiple-use sectors including industrial logistics, retail and medical along with a strong mix of national and international tenants.

The Fund currently holds five assets and intends to purchase the two further assets: Lot 7 Mercantile Drive Park Ridge, QLD and 72 Formation St Wacol QLD, subject to completion of our due diligence. These two high quality assets add significant diversity to the fund and bring opportunities for growth. Following the acquisition of these assets, the Fund will consist of seven assets, spread across three Australian states and have a mix of industrial, logistics, retail and medical. The Manager may seek a further property for purchase by the Fund.

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Portfolio Overview

Current Tenants

Features of the Fund

  • The Fund holds a diversified portfolio of commercial assets across multiple sectors.
  • Targeting $75m - $90m 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.
Key Information
Expressions of Interests Now Open
Total Raise $11,000,000*
Minimum Investment $50,000

*The manager has the right to accept more or less than the target raise amount.

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New Assets to the portfolio

The following two new assets will be added to the Fund subject to the completion of our extensive due diligence process.

NEW 7th Asset – Park Ridge, QLD

Address Lot 7 Mercantile Drive,
Park Ridge QLD
Land Area 11,570sqm
Building Area 775sqm
Key Tenants Cleanaway Pty Ltd (subsidiary of Cleanaway Waste Management Limited)

Investment Highlights

  • Leased to Cleanaway Pty Ltd (subsidiary of Cleanaway Waste Management Limited - listed on the ASX with a market capitalisation of $5.6bn);
  • Brand new facility which has just reached practical completion operating as a Cleanaway truck depot;
  • Significant 11,570sqm industrial site with a low 8% site coverage and two street frontages;
  • Potential for future expansion given low site coverage;
  • Long term lease for 8 years with fixed 3% annual reviews;
  • Office/workshop facility with extensive hardstand of circa 6,700sqm for truck parking;
  • Adjacent to the Crestmead Logistics Park, one of Brisbane’s newest premium logistics estate;
  • Net lease with outgoings fully recovered

Property Description

Lot 7 Mercantile Drive, Park Ridge comprises a brand-new Cleanaway depot utilised for maintenance and storage of their truck fleet along with an administration office. The facility will have a gross lettable area of 775 sqm comprising office/workshop along with extensive hardstand of approximately 6,700sqm.

The property is located within Park Ridge adjacent to the Crestmead Logistics Park, approximately 27 kilometres south of Brisbane’s CBD, and in one of south east Queensland’s most strategically significant industrial regions. The property is ideally positioned 7km south of the Logan and Gateway Motorway Interchange, the main transport corridors servicing south-east Brisbane. These arterial roads provide direct access to all major infrastructure including Brisbane and Ipswich CBD, Brisbane Port, Brisbane Airport, and Pacific Motorway to the Gold Coast.

Tenancy and Leasing Information

Cleanaway Waste Management Limited is Australia’s leading total waste management, industrial and environmental services company. Cleanaway have supported Australian businesses for over 50 years, delivering solutions that offer extraordinary benefits not only for our customers, but also for our communities. Cleanaway have over 6,000 expert staff and a fleet of almost 5,300 specialist vehicles across more than 260 locations around Australia.

They are Australia’s largest waste, recycling, industrial and liquids service provider with a substantial network of state-of-the-art facilities, transfer stations, engineered landfills, liquid treatment plants and refineries.

Cleanaway are a ASX 100 listed company (ASX:CWY) with a market capitalisation of $5.6bn and reported $2.33bn in gross revenue for FY2020.

Cleanaway are focused on a sustainable future treating all waste as a resource and aim to incorporate recovery, recycling and reuse throughout their operations.

NEW 6th Asset – Wacol, QLD

Address 72 Formation Street,
Wacol QLD
Land Area 18,910sqm
Building Area 9,074sqm
Key Tenants Penske Commercial Vehicles
Pty Ltd (division of Penske
Automotive Group)

Investment Highlights

  • Leased to long standing tenant Penske Commercial Vehicles Pty Ltd – a subsidiary of Penske Automotive Group Inc. who are listed on the New York Stock Exchange (NYSE: PAG);
  • Significant 18,910sqm industrial site with a 51% site coverage and two street frontages;
  • Total GLA of 9,704sqm with substantial hardstand for truck movement/storage;
  • Located in one of Brisbane’s premier industrial areas and benefits from direct access to the Ipswich and Logan Motorways;
  • Functional improvements with hardstand and dual street frontages providing ability to lease to multiple users;
  • Long term tenant with a WALE of 4.3 years

Property Description

72 Formation Street, Wacol is an office/warehouse facility featuring a generic design that would suit a multitude of industrial users. The facility has a total gross lettable area of 9,704 sqm and comprises a two-level corporate office fronting Formation Street of 1,496 sqm and a 8,208sqm warehouse comprising three separate areas.

The office accommodation has recently been refurbished and accommodates Penske Australia’s head office. Clearance height of the warehouse ranges between 6 metres and 10.5 metres and provides access via a number of roller doors along the northern and western elevations. The property has significant hardstand for truck movement and storage and benefits from two street frontages.

The property is located within the prime industrial location of Wacol, approximately 22 kilometres south-west of Brisbane’s CBD, and in one of south east Queensland’s most strategically significant industrial regions. Wacol is highly regarded for its proximity to Brisbane’s major arterial roads including Ipswich and Logan Motorways and Centenary Highway all of which are in proximity to the subject property. These arterial roads provide direct access to all major infrastructure including Brisbane and Ipswich CBD, Brisbane Port, Brisbane Airport and the Gold Coast.

Tenancy and Leasing Information

The property is leased to Penske Commercial Vehicles Pty Ltd (subsidiary Penske Automotive Group expiring 31 August 2025. The lease features CPI reviews and a 6-month rent bank guarantee. Penske Australia is a leading supplier of the world’s finest heavy-duty trucks, diesel and gas engines and power systems.

Distributing the Western Star Trucks, MAN Trucks & Buses, Dennis Eagle MTU, Detroit and Allison Transmission brands, Penske Australia operates across the most dynamic markets including
on-highway and various off-highway industries such as mining, power generation, construction and industrial, rail, marine, oil and gas, agriculture, and defence.

In addition to distributing Western Star Trucks, MAN Truck & Bus, and Dennis Eagle, Penske Australia is also the appointed retail dealer of these brands across select locations, providing full retail sales, service and parts functions. Penske Australia has around 950 employees and a network of strategically located branches and field locations, and more than 100 dealers.

Penske Australia is wholly owned by international transportation services company, Penske Automotive Group, Inc. (NYSE: PAG), and operates independently to service its customer base.

Current Assets Portfolio

The following assets are current properties in MPF Diversified Fund No.3

First Asset – 13 Modal Crescent, Canning Vale, WA

Address 13 Modal Crescent,
Canning Vale WA 6155
Land Area 18,771 sqm
Building Area 7,773 sqm (including canopy)
Sector Industrial
Key Tenants Timberlink Australia Pty Ltd

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.

Investment Highlights

  • 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

Second Asset – 35 Minilya Parkway, Greenfields, WA

Address 35 Minilya Parkway,
Greenfields WA 6210
Land Area 8,801 sqm
Building Area 7,063 sqm*
Sector Retail
Key Tenants Caltex, McDonald’s and Genesis Care

*Lettable area of Caltex and McDonald’s is based on the area of the land.

The second asset features three standalone buildings including a Caltex Service Station, McDonald’s Restaurant and a specialist cancer treatment centre. 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 $10 million 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.

Investment Highlights

  • Convenience Retail and Medical Centre leased to multination tenants including McDonald’s, Caltex and Genesis Care;
  • Modern improvements, with limited exposure to capital expenditure;
  • Located on a prominent corner position adjacent to the Peel Health Campus;
  • Weighted average lease expiry of 9.1 years (by income);
  • All tenants are classified as ‘essential services’ and continued to trade through COVID-19.

Third Asset - 110 Castro Way, Derrimut, VIC

Address 110 Castro Way,
Derrimut VIC 3030
Land Area 10,600 sqm
Building Area 2,860 sqm
Sector Logistics
Key Tenants Goodwin Freight Services

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.

Investment Highlights

  • A 7-year lease on market terms
  • The tenant operates a key logistics route between Melbourne and Adelaide with the business originally established in 1967
  • The tenant has traded throughout COVID 19 and advises turnover has increased over this period
  • 3% fixed annual rent increases
  • Modern generic improvements constructed in 2016, with limited exposure tcapital 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

Fourth Asset - 28-34 Magnesium Drive, Crestmead, QLD

Address 28-34 Magnesium Drive,
Crestmead QLD
Land Area 15,140 sqm
Building Area 4,039 sqm
Sector Industrial
Key Tenants Brisbane Cullet Pty Ltd (VISY)

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 (crushed glass) 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.

Investment Highlights

  • 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 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; in the event the tenant did ever relocate, VISY is under lease obligations to fully remediate the site;
  • Multiple exit strategies.

Fifth Asset – 64 Axis Place, Larapinta, QLD

Address 64 Axis Place,
Larapinta QLD
Land Area 7,727 sqm
Building Area 3,742 sqm
Sector Industrial
Key Tenants Linde Material Handling (division of KION Group)

64 Axis Place, Larapinta is a modern office/warehouse facility featuring a generic design that would suit a multitude of users. The facility has a total gross lettable area of 3,742m2 and comprises 502m2 of office, showroom and amenities, a 3,240m2 warehouse and approximately 1,000m2 of hardstand to the rear. The office/showroom is over two levels with the rear warehouse having a minimum clearance of 7.6 meters with side and rear roller door access.

The property is located within the Radius Industrial City estate within the suburb of Larapinta, approximately 26 kilometres south of Brisbane’s CBD, and in one of south east Queensland’s most strategically significant industrial regions. The property is ideally positioned 750m west of the Paradise Road on-ramp providing direct access to the Logan Motorway. The Logan Motorway is one of the major arterial corridors servicing south-east Queensland and linking directly to the Ipswich, Gateway and Pacific Motorways. These arterial roads provide direct access to all major infrastructure including Brisbane and Ipswich CBD, Brisbane Port, Brisbane Airport and the Gold Coast.

The quality of this location is evident by the major occupiers in the area including; Toll, Toyota Material Handling, Woolworths Distribution Centre and Mainfreight to name a few.

Investment Highlights

  • Leased to Linde Material Handling – a division of KION Group who are listed on the Frankfurt Stock Exchange and the second largest manufacturer of forklifts in the world;
  • Located in one of Brisbane’s premier industrial estates with excellent connectivity and the added benefit of exposure to the Logan Motorway;
  • Modern functional improvements originally constructed in 2006 for the current tenant and suitable for a wide range of industrial users;
  • Long term tenant with a WALE of 4.8 years;
  • Fixed 3% annual increases with current passing rent at market;
  • Comprehensive make good at lease expiry including redecoration.

This Fund is now fully subscribed.

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Units in this Fund are issued by Mair Property Securities Ltd ACN 091 623 862 AFSL number 238386 (Responsible Entity) as a responsible entity of the MPF Diversified Fund No.3. Mair Property Funds Limited ACN 151 957 676 is the investment manager of the Fund (Manager).

The information provided on this website 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 content, 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 document. 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 (PDS) 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. You can obtain a copy of the PDS and application form by calling 08 9321 5566 or emailing bdunn@mair.com.au

P: (08) 9321 5566 F: (08) 9321 8413
Level 2, 1 Havelock Street, West Perth, WA 6005