302
%*
Total Return (Net of equity invested)
12.3
%
IRR (Average Internal Rate of Return Per Annum)
*Figures based on original $1.00 units. Past Performance is not a reliable indicator of future performance.
Fund Mandate
A diversified fund with a passive income focus
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 in Focus
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 local transport company, WA Freightlines.
A large format retail precinct in Beckenham, tenanted by prominent retailers Forty Winks and Beacon Lighting.
The Glengarry Medical Centre in Duncraig, with reputable 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 term of the Fund to further enhance its income potential.
This included negotiating a strategic lease transaction to replace the tenancy in the first asset with Rock Engineering, who were subsequently acquired by globally-listed mining services and construction group, SRG Global.
Outcome
At the end of its initial term in June 2015, the Fund was providing an annual distribution of 11.5 cents per unit to investors, marking an increase of 44% on its initial distributions. As a result, investors voted to extend the Fund for a further term of five years.
The Fund’s assets were sold down in December 2020 at the end of the extension, resulting in the following key outcomes:
Our team realised a weighted gross capital uplift of 52% from the sale of the Fund’s assets compared to their initial purchase price.
Over the course of the Fund, Westbridge facilitated over 27 leasing transactions to maintain full occupancy to high-quality tenants.
Over its 15-year term, 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
Register to stay up-to-date on future fund investment opportunities.