Fund manager buys government backed strata office
MPG Funds Management has bought a strata office investment in a mixed use, predominantly specialist disability accommodation complex, in Melbourne’s west Sunshine.
The 2127 square metre tenancy – the first and second floor of 15-19 Service Street – was picked up for $14.3 million reflecting a 6.25 per cent yield.
The state government’s Orange Door is the occupier on a lease expiring in eight years.
MPG invests again
MPG will hold the asset in its unlisted Essential Services Property Trust which is now worth $230m.
Combined with assets in its other funds, the company controls assets worth c$1.05 billion (story continues below).
“Despite some interest rate uncertainty, MPG will continue to seek to purchase quality properties with strong fundamentals such as this Sunshine property in the range of $5m-$35m to continue the growth of the trust,” the trust’s managing director and co-founder, Brett Gorman, said.
Leiba Commercial’s Marc Leiba said government backed assets continue to attract investors.
“This particular property being brand new had the added benefit to the purchaser of having significant depreciation benefits on offer as well as being located in a metropolitan location…so it was a perfect fit for the buyer’s fund,” he added.
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