One small step, one giant leap: MPG portfolio hits a billion
MPG Funds Management has boosted the value of its Essential Services Property Trust (MESPT) – until recently known as the Regional Cities Property Trust – by a fifth, following a $33.5 million spending spree.
In Victoria, the manager outlaid $17.5m for a Shepparton office (pictured, top) leased to the Department of Justice until 2032, and Court Services Victoria, which moves out next year.
On 1815 square metres at 409-415 Wyndham Street (or Goulburn Valley Highway), on the north east corner of Vaughan, the result reflects a 4.9 per cent yield.
MESPT will also be able to claim depreciation benefits; the asset is two years old.
Vinci Carbone’s Joseph Carbone and Frank Vinci with National Retail Group’s Michael Spektor were the agents.
In Melbourne, meanwhile, MPG has settled on a near-new Tarneit childcare centre for which it paid $7.02m at auction last December.
The property is valued at $7.05m in the group’s mid-year reports.
Leased to Aspire until 2036 (or 2051 with options), 1 Wade St, spreading 2851 sqm, is permitted for 122 clients.
The tenancy agreement contains fixed annual rent rises.
NT, SA assets
In Yarrawonga, a suburb of Palmerston, MPG has spent $6.47m for a 1793 sqm youth skills training centre leased to the Northern Territory government for nine years.
Completed last year, 41 McCourt Road includes five classrooms, four workshops, offices, a dining room, commercial kitchen and end of trip facilities (story continues below).
The zoning of the 5352 sqm block means, longer term, the landlord could consider replacing it with a commercial investment.
This asset settled in March.
Palmerston is 17 kilometres south east of Darwin.
The final property MPG has purchased for MESPT is 17/760 Grand Boulevard, Seaford Meadows, about 30 kilometres south of Adelaide.
The 523 sqm single-level, dual tenancy strata, part of the Seaford Meadows Shopping Centre, is leased to the state government’s Services SA and local Labor MP Chris Picton, also shadow minister for Health and Wellbeing.
The manager paid $2.7m in a deal struck mid-last year.
MESPT now holds 22 assets worth a total of $213.52m.
One small step, one giant leap
MPG director Brett Gorman said the latest four properties were acquired at a blended 5.4pc yield.
Combined with other trusts, and following a swag of revaluations dated June 30, the manager now controls real estate worth just over $1 billion.
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