MPG Hardware Trust
An opportunity to invest in a soon to be completed large format retail centre located in a growing region of Victoria.
The MPG Hardware Trust offers an investment opportunity in a redeveloped large-format retail centre in Wonthaggi, Victoria. The property, currently valued at $5.9 million, is undergoing redevelopment and is expected to be worth $11.8 million upon completion and full occupancy. The centre is strategically located in a prime position in Wonthaggi's town centre and will be anchored by prominent tenants like Super Cheap Auto, BCF, Forty Winks, and Choice The Discount Store.
The Trust aims to provide investors with regular, tax-advantaged income and potential capital growth. With a forecast cash yield of 6.0% per annum and fixed rental increases, the Trust offers a stable and sustainable investment. The experienced management team at MPG Funds Management Ltd brings over 40 years of property investment and development expertise to the project. The Trust has a defined exit strategy at the end of June 2026, providing investors with flexibility and transparency.
This is an exciting opportunity to invest in the MPG Hardware Trust (Trust). MPG Funds Management Ltd (MPG) in its capacity as Trustee for the Trust is the existing owner of the large format retail centre in Wonthaggi, Victoria which has a current value of $5.9 million. MPG has entered into agreements to redevelop and lease the centre to a combination of identified tenants. Redevelopment is scheduled for completion by the end of 2024 and it is estimated that the value of the property will be $11.8 million once fully leased.
The centre will be located in a prominent position on the the corner of the Bass Hwy/McKenzie St and Korumburra Rd in Wonthaggi’s town centre. The centre will benefit from significant vehicular traffic exposure, with the Bass Hwy being the primary arterial road for Wonthaggi, leading to neighbouring regional towns and Melbourne. The centre will also be located in close proximity to leading retailers Big W, Harvey Norman, Aldi, Coles and Woolworths.1
MPG has suspended the distributions to existing unitholders under the Trust pending the completion of the proposed redevelopment. However, MPG intends to pay distributions quarterly in arrears from the 31 March 2025 quarter and distributions are forecast to be 6.0%pa2 for the forecast period ending 30 June 2026. The Trust has a current term ending 30 June 2026, unless the Property is sold earlier or investors decide to extend the term of the trust. In approaching the end of the current term, Unitholders will be given the opportunity to sell their Units or extend the term of their investment. This exit procedure will include a first right of refusal to existing investors wishing to continue their investment.
Through its fixed rental increases of at least 2.5% per annum with Super Cheap Auto, BCF, Forty Winks and Choice The Discount Store, the Trust aims to provide Investors with sustainable and stable, tax-advantaged income with the potential for capital growth. The Property enjoys high visibility from passing traffic with good accessibility from the major arterial roads. The Trust will have a weighted average lease expiry of 8.15 years from commencement of the leases.
MPG is an experienced specialist property funds manager with a highly skilled and motivated team that extends across asset management, property management, property development and property investment. MPG and associates of the McMullin family have over 40 years’ experience in property investments, development and management.
1 Deep End Services Large Format Retail Market Review Wonthaggi February 2023.
2 Estimate only and not guaranteed to occur. For a full explanation of forecast returns refer to page 17 of the current IM.
Trust Objective
The objective of the Trust is to provide Investors with regular tax-advantaged income and the potential for capital growth through an investment in a soon to be completed large format retail property.
Features and Benefits
A 3,597sqm1 large format retail centre – A new capital raising to fund the internal redevelopment of an existing property that will contain four specialty tenancies, scheduled to commence trading in December 2024 in the growing region of Wonthaggi in Victoria.
National tenants on long-term leases – Leases to Super Cheap Auto and BCF (subsidiaries of ASX listed Super Retail Group) were secured for 7 year terms until December 2031 (plus 5 year options). Leases have also been secured with Forty Winks and Choice The Discount Store, resulting in a WALE for the centre of 8.15 years.
Attractive regular tax-advantaged returns – Forecast cash yield of 6.0% pa2 to be paid quarterly. Depreciation and building allowances mean a high proportion of this income will be tax-advantaged.
Potential for capital growth – Long term population growth forecast for the region and fixed rental growth augurs well for future capital price appreciation.
Experienced manager with a proven track record – The Trustee, MPG Funds Management Ltd has significant commercial property investment, management and development experience, including over 20 years dealing with Large Format Retail investments.
Defined Exit Strategy – The Trust has a defined exit strategy at the end of 30 June 2026.
Reduced capital volatility – Australian direct property has historically experienced lower volatility than listed Australian and international shares and REITs.
Target Investors
Wholesale Investors seeking an investment opportunity in commercial property, who typically are seeking regular tax-advantaged income and who don’t have the expertise, opportunity or time to undertake the projects themselves.
1 Approximate area only.
The Property occupies a prominent position on the corner of the Bass Hwy/McKenzie St and Korumburra Rd in Wonthaggi’s town centre.
Bass Hwy/McKenzie Street is the primary arterial road of Wonthaggi and connects the town to neighbouring towns such as Lang Lang, Cowes and Inverloch, as well as Melbourne.
The property is located in the main retail shopping precinct of Wonthaggi, with Harvey Norman and Aldi to the immediate south, and leading retailers Big W, Dan Murphy’s, Coles and Woolworths located west along Korumburra Rd.
The Property is to be redeveloped internally on the terms outlined in this Information Memorandum and on completion will consist of a large format retail centre leased to Super Cheap Auto, BCF, Forty Winks and Choice The Discount Store as outlined below:
| Tenants as secured under Agreement to Lease | |
| Super Cheap Auto | 800sqm Gross Lettable Area, 7 year lease term, 1 x 5 year option, 3.50% rental increases |
| BCF | 767sqm Gross Lettable Area, 7 year lease term, 1 x 5 year option, 3.00% rental increases |
| Forty Winks | 504sqm Gross Lettable Area, 6 year lease term, 2 x 5 year options, 3.00% rental increases |
| Choice The Discount Store | 1,526sqm Gross Lettable Area, 10 year lease term, 1 x 5 year option, 3.00% rental increases |
Tenants Site Selection
Super Retail Group Ltd
Super Retail Group is a leading Australian retail company which has been listed on the ASX (code SUL) since 2004. The company has a market capitalisation of $3.4 billion and generates annual turnover exceeding $3.5 billion. Super Retail Group operates several market leading brands, including: Rebel Sport, Supercheap Auto, BCF (Boating, Camping, Fishing), and Macpac. The company currently employs more than 14,000 team members and is headquartered in Brisbane, Queensland. Supercheap Auto and BCF are part of Super Retail Group Ltd which is listed on the ASX, with a market capitalisation of $3.4 billion.
Supercheap Auto
Supercheap Auto is a leading Australian retailer of automotive parts and accessories, established in 1972. The company offers a wide range of products, including car parts, tools, accessories, and maintenance supplies. The business currently has over 300 stores across Australia and New Zealand, and more than 3,800 team members. Supercheap Auto caters to car enthusiasts, DIY mechanics, and everyday motorists, with a range of over 10,000 different items available in store.
BCF
BCF (Boating, Camping, Fishing) is a leading Australian retailer specialising in outdoor and recreational products. Established in 2005, BCF operates over 150 stores across Australia and operates in all states. The company offers a wide range of products, including boats, fishing gear, camping equipment, and outdoor apparel. BCF’s extensive product offering makes it a one-stop shop for outdoor adventurers.
Choice The Discount Store
Choice The Discount Store opened its first store in 1996 and has over 25 stores in the eastern states of Australia., Choice The Discount Store prides itself on delivering value for money retail items to local communities.
Forty Winks
Founded in 1984, Forty Winks are Australia’s leading bedding retail specialist, with a network of more than 100 family owned and operated stores, servicing all major cities, territories and regional centres.
MPG Funds Management
Located in the Melbourne suburb of Camberwell, MPG Funds Management Ltd (ACN 102 843 809) (MPG) was established by the McMullin Group and the Gorman family in 2002.
Since then, MPG has become its own innovative and prosperous, Australian-owned company, with more than $1.1 billion of property assets, over 195 individual tenancies under management and 14 property trusts.
MPG is an unlisted public company that holds an Australian Financial Services Licence (AFSL 227114) to act as a trustee for managed investment schemes and is owned by interests associated with the McMullin Group and the Gorman family.
MPG aims to provide its investors with property investment opportunities that offer the potential for reliable income returns, capital growth and taxation benefits. MPG prides itself on its ability to source high quality properties, its experienced personnel, its innovative strategies and the strength of its developed networks.
MPG is the Trustee of the Trust and governs it in accordance with the Trust Deed. MPG is responsible for the application and redemption of Units, valuation and management of Trust assets, administration and payment
of income distributions from the Trust. MPG has also undertaken preliminary work to set up this trust structure including preparation of this IM, undertaking acquisition due diligence, organising the preparation of legal
documentation, applications for banking finance as well as other administrative tasks.
MPG currently is the trustee for 14 other direct property funds and has developed an outstanding track record in the business of property trusts and managing property assets.
In 2020 and 2008, MPG was named as one of the fastest growing Australian companies in the BRW Fast 100 Awards. In 2007, MPG was named as the tenth “Fastest of the Fast” growing companies in BRW magazine’s “Fast Starters” edition.
In 2013, MPG was the winner of the IAIR Award for Excellence in Property Investment Management/Boutique in Australia.
Trevor has significant commercial experience gained over the past 30 years including over 19 years’ experience as a partner of Big 4 accounting firm Deloitte Touche Tohmatsu where he held the position of Managing Partner of the Victorian Growth Solutions Division and had a significant number of property industry clients. He is currently Chairman of MPG Funds Management and oversees net assets in excess of $1 Billion. He is a Fellow of the Institute of Chartered Accountants.
Qualifications: FCA, Grad Dip Bus Admin
Eddie has held senior executive positions in the financial services and funds management industries for over 30 years. Much of this was with the National Mutual Group (now AMP Ltd), where he held a number of CEO/Executive Director positions including a funds management company (which included the listed National Mutual Property Trust and a range of other unlisted property and equity trusts), a Public Trustee company and Financial Planning Group.
Brett is a Chartered Accountant and Licensed Real Estate Agent and has significant experience gained in establishing and operating managed investment schemes. Prior to working with MPG, Brett held positions with Deloitte Touche Tohmatsu in the Corporate Finance, Audit and Growth Solutions divisions. He holds a Graduate Diploma in Applied Finance and Investment and Bachelor of Commerce. He is a Fellow of the Financial Services Institute of Australia, Registered Tax Agent and is a holder of a Public Practice Certificate.
Qualifications: CA, F.FIN, B.Comm, Grad Dip App Fin & Invest
Click here to see the latest Investment Updates.
Statutory Statement
This offer of scheme interests is available to wholesale clients only. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
General Disclaimer
IMPORTANT STATEMENT ABOUT YOUR USE OF THIS SITE
Information on this site is intended for Australian users only.
This site is operated by Investment Markets (Aust) Pty Ltd. (ACN 634 057 248) (IMA, we, us and our), the holder of Australian Financial Services Licence (AFSL) no. 527875. The content is provided solely for information purposes, is not a recommendation or an offer to buy or sell a security, and is not warranted to be correct, complete or accurate. To the extent permitted by law, neither IMA, its affiliates, nor the content providers (such as the issuers of securities who appear on the site) are responsible for any investment decisions, damages or losses resulting from, or related to, the content, data and analyses or their use. The investment products on this site and any statements made about them by their issuers are not vetted, verified or researched by IMA. The presence of an investment product on this site should not be interpreted as an implied endorsement of it by IMA. Certain content provided may constitute a summary or extract of another document such as a Product Disclosure Statement. To the extent any content is general advice, it has been prepared by IMA. Any general advice has been provided without reference to your investment objectives, financial situations or needs. For more information refer to our Financial Services Guide. To obtain advice tailored to your situation, contact a financial advisor. You should consider the advice in light of these matters and, if applicable, the relevant Product Disclosure Statement (or other offer document) before making any decision to invest. Past performance does not necessarily indicate an investment product’s future performance. The content is current as at date of initial publication and may not be current as at your date of viewing. For a more complete understanding of all the terms and conditions of your use of this site click here.