Core Property has reviewed the "MPG Regional Cities Property Trust"
The Trust provides an opportunity to invest in a portfolio of properties located along the eastern seaboard of Australia in regional cities that are benefitting from new infrastructure spend and growing local economies.
The Trust was launched in February 2018 with 4 properties and is seeking to raise further equity to expand the portfolio to 8 properties. The portfolio metrics are robust with 100% occupancy and a long Weighted Average Lease Expiry of 8.5 years. Around 88% of the rental income is sourced from government/government funded tenants such as Centrelink, Medicare and the Victorian EPA. The Trust will also invest a portion of its portfolio in the MPG Retail Brands Property Trust, a related property fund.
The Manager is forecasting annualised distributions of 7.0% p.a. in FY19 and FY20. Core Property expects this to rise to 8.1% towards the end of the Trust's term in 7 years.
In Core Property’s opinion, this product would be best suited to investors who are seeking an attractive 7.0%+ income yield, supported by a portfolio of regional properties with resilient characteristics including government and childcare tenancies.
Core Property has rated the Fund as RECOMMENDED.