302
%
Total Return (Net of Equity Invested)
11.8
%
Average Annual Income Distributions to Investors
12.3
%
IRR (Internal Rate of Return)
Overview
MPS Unit Trust No.1 was established in 2005 as a multi-asset property fund with a passive income focus. The Fund’s primary aim was to provide investors with regular income distributions, while spreading risk exposure through a multi-sector strategy. While predominantly income focused, the Fund also looked to target assets with long-term potential for capital growth to enhance long-term returns for our investors.
Fund Timeline
To fulfill the Fund’s income mandate, our team targeted assets with high-quality national and international tenants spread across a range of industry sectors. These included:
An industrial asset located in the high-profile industrial precinct of Welshpool, initially leased to WA Freightlines
A large format retail precinct, tenanted by prominent retailers Forty Winks and Beacon Lighting
The Glengarry Medical Centre in Duncraig, with tenants including global healthcare operator Ramsay Health Care and Symbion Pathology (EBOS Group)
While these acquisitions provided a strong initial tenancy base to support consistency of distributions, our team adopted a particularly active leasing approach throughout the Fund’s term to further enhance income potential. This included replacing the tenancy in the first asset with Rock Engineering, who were subsequently acquired by globally-listed mining services and construction group, SRG Global.
At the end of its initial term in June 2015, the Fund was significantly outperforming its income target with annual distributions of 11.5 cents per unit, resulting in investors voting to extend the term for a further five years.
Outcome
The Fund’s assets were sold down in December 2020 at the end of the extension, resulting in a weighted gross capital uplift of 52% compared to their initial purchase price. Over the course of the holding period, Westbridge facilitated over 27 leasing transactions to maintain full occupancy to high-quality tenants. As a result of this strong rental performance, initial investors in the MPS Unit Trust 1 received a 177% return* on their investment from income distributions alone. Together with a capital return of $2.25 per initial $1 unit invested, this resulted in a substantial 302%* return on investment.
*Figures based on original $1.00 units. Past performance is not a reliable indicator of future performance. Westbridge Property Securities Ltd ABN 28 091 623 862. AFS Licence 238386.
Based on a $100,000 investment, investors who purchased units at the outset of this Fund realised $302,000 in distributions and capital gain over the Fund’s term, exclusive of initial equity invested.
Register for future opportunities
Want to be notified of future investment opportunities with Westbridge Funds Management? Register below to hear about our upcoming funds: