MPG Bulky Goods Retail Trust

Large format retail property fund with strong track record targeting 6.25% p.a. distributions

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Core Property has reviewed the MPG Bulky Goods Retail Trust, an unlisted property trust that invests in a portfolio of large format retail properties anchored by well established retail tenants.

The Trust is managed by MPG Funds Management, which has over $900M of property assets under management.

The Trust is anchored by two strong performing homemaker centres in Chirnside Park VIC and Mildura VIC. The properties have delivered exceptional returns over the long term, with the unit price increasing by over 230% since the Trust was established in 2005.

The Trust is looking to acquire Plains Junction, a large format retail asset in Browns Plains QLD, to add to the portfolio.

The Manager is looking to raise $10.0M through the issue of 3.0M new units at an issue price of $3.35 per unit. Distributions are forecast to be 20.95 cents per unit in FY23-FY24, representing a yield of 6.25% based on the issue price. The Fund has a minimum investment of $10,000.

Core Property has rated the Fund as RECOMMENDED.