Total Return Paid Since Inception (Net of Equity Invested)
Projected Total Return (Net of Equity Invested)*
Indicative IRR (Internal Rate of Return)*
*The Indicative IRR is the average for the Fund and includes all distributions paid as well as the net amount (after payment of estimated costs and expenses and estimated liabilities of the Fund) which would be paid to Unitholders if the Assets were sold. Target returns are not promised nor guaranteed and are based upon a number of assumptions. Their achievement is subject to risks. Past performance is not a reliable indicator of future performance.
Overview
The MPS Diversified Property Trust was established in 2015 with the objective of delivering regular, passive income to investors while targeting sectors with potential for long-term capital growth. Anchored by strategic acquisitions in the Victorian industrial sector, the Fund amassed a diversified $43 million portfolio across industrial, retail, and healthcare assets in Victoria, Western Australia, and Queensland.
The strategy has delivered strong results to-date, supported by robust income and asset performance. Since inception, investors have received a total return of 128%* net of initial equity invested, with average annual income distributions of 8.6%. This success reflects the Fund’s ability to capitalise on cyclical opportunities and drive significant value growth, as seen in key divestments and revaluations throughout its lifecycle. As at December 2024, remaining units in the Fund were valued at $0.25, with a projected total return on closure of 254% (154% net of equity in)*.
Fund Timeline
In compiling the acquisition strategy for this Fund, our team identified a particular opportunity in the Victorian industrial sector, with our research indicating this market was approaching a cyclical upswing. We strategically anchored the portfolio around this sector, with further acquisitions centred around the Fund’s diversification strategy.
2015
September 2015
Fund establishment
The Diversified Property Trust was established with the purchase of an industrial warehouse and office/showroom facility in Lynbrook, Victoria. The asset offered above average income returns to seed the Fund, underpinned by strong underlying tenancies to Ausbricks & ARC (formerly One Steel) – both part of ASX-listed companies.
November 2015 – June 2016
Portfolio expansion
A further two assets were acquired for the Fund: a near-new office warehouse facility in Henderson, Western Australia, and a multi-tenanted retail centre located in Maroochydore, Queensland. These assets provided state and sector diversification, further bolstering the Fund’s exposure to blue-chip tenants including IGA, PizzaHut and Enermech.
2017
June 2017
Purchase of Ellenbrook Medical Centre
The Fund acquired its fourth asset – a multi-tenanted medical centre in Ellenbrook, Western Australia. This asset offered exposure to Australia’s growing healthcare sector through a diverse range of medical tenancies, with strong income and growth potential through the renewal of several leases nearing expiry.
October 2017
Final acquisitions
The Fund completed its acquisition phase with the purchase of two further industrial assets – located in Ravenhall and Altona, Victoria. Both facilities offered strong income profiles, with our team negotiating a lease extension on the final asset while under contract, taking its WALE from 2 to 8.21 years.
2020
2018 – 2022
Growth in unit prices
Over the course of the next two years, Westbridge negotiated several key lease extensions across the Fund’s assets. In the first five years to 2020, the Fund achieved 30% growth in unit prices with average distributions of 7.7% p.a.
June 2021
Divestment of Ellenbrook Medical Centre
After negotiating lease renewals on the Ellenbrook Medical Centre, our team saw a key opportunity to realise the Centre’s value uplift through divestment. The sale marked a 48% uplift on the Centre’s purchase price, facilitating a special distribution of $0.43 per unit to investors.
2023
September 2023
Special distribution to investors
Following an investor vote to extend the Fund, all three Victorian assets were revalued, reflecting significant uplifts of 63%, 92% and 78% respectively on their purchase prices. Westbridge took this opportunity to re-gear the Fund’s finance facility, resulting in a special distribution of $0.15 per unit.
August 2024
Altona divested for $30 million
Capitalising on the countercyclical upswing in Melbourne’s industrial market, Westbridge divested the industrial facility at 22 Salta Drive in Altona for $30 million. The sale marked a substantial 160% increase on the 2017 purchase price, underpinning a further distribution of $0.75 cents per unit to investors.
December 2024
Further industrial assets sold
Westbridge completed the sale of two further industrial assets, supporting a combined capital distribution of $0.45 per unit to investors. Notably, our team negotiated the sale of the industrial facility in Ravenhall, Victoria for $18 million – 103% above its initial purchase price. With these sales, the total return for unitholders has reached 128% to date net of equity invested.
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