Tweed Hub nets $40m
MELBOURNE-BASED funds manager MPG has followed up on a purchase last year of a Beaudesert shopping centre by buying the Tweed Hub centre for $40.075 million.
Tweed Hub, at 112-140 Minjungbal Drive, has been bought from the listed Aventus Retail Property Fund.
MPG has immediately put it into the single-property MPG Tweed Hub Retail Trust and is forecasting trust investors will get an initial return of 7.25 per cent a year.
Aventus bought the Tweed Heads South centre, which is on a 2.62ha site, from BB Retail Property for $28.2 million in 2014.
The 10,200 sqm centre was known as Home Mart when BB bought it seven years earlier for $30.2 million.
Tenants include KFC, Hungry Jack’s, First Choice Liquor, The Good Guys, a 7-11 service station, a Chempro outlet, and QML Pathology.
The MPG group filled the MPG Tweed Hub Retail Trust ahead of settling the purchase of the centre, with the trust geared to 55 per cent after borrowing $22 million.
Last July MPG, in its first foray into Queensland, bought the single-level Beaudesert Central shopping centre for $16.85 million on a 6.5 per cent yield.
That 11-year-old centre has Woolworths as an anchor tenant and also has 12 specialty outlet tenants. MPG was founded in the 1970s by the late Ian McMullan.