Your catalyst for growth. Delivering superior returns to property investors.

Transcription

1 Your catalyst for growth. Delivering superior returns to property investors. 1

2 2 Delivering world class performance.

3 Superior returns. Capital growth. Mair Property Funds (MPF) has been helping investors grow their wealth through commercial property investment for more than 35 years. Investing in commercial property is rarely an option for individual investors due to the large amount of capital and the high level of expertise required. By establishing and operating unlisted property trusts registered with the Australian Securities and Investment Commission (ASIC), we make it an accessible and rewarding possibility. We believe in the power of investing in commercial property trusts, but actions speak louder than words. That s why we re proud of our track record of delivering superior returns to investors across our portfolio. Benchmarked against major indices and other asset classes, we lead the way.

4 Our focus. Mair Property Funds is a Western Australian owned company offering actively managed Australian commercial property investment trusts. Funds Management Wholesale and retail trusts Holder of AFSL License (ASIC) Commercial Property Investment We specialise in the acquisitions and management of commercial property investment though unlisted property trusts. Focused on high performance. A good investment strategy means different things to different people. To us, it means above-average returns, capital security and growth, and confidence in an experienced and knowledgeable team. We secure superior investments using our thorough investment philosophy. We then actively manage the properties on behalf of our investors to ensure property performance and lease compliance, keeping investors informed along the way. Your wealth. Our business. We re a Perth-based business focused on creating wealth for Australian investors, offering a national outlook and quality property investment opportunities across Australia. Mair Property Funds manages more than $183m of commercial properties, holding assets over 17 trusts and syndicates. 4 ABOUT US

5 Our investors benefit from personalised service, professional expertise and many years of successful experience.

6 Our investment philosophy. The first step to owning a superior investment is superior buying. We firmly believe that bought well, commercial property can outclass all other investments over the life of the asset. Smart purchasing of good quality commercial property is what we do. We conduct detailed analysis and due diligence, based on a comprehensive set of investment criteria and our knowledge of market trends, to secure investments that will outperform in the long run. This strategy involves focusing on attributes that will produce strong cash flow and capital growth, and eliminating or reducing investment risk such as lost income from leasing vacancies. Coupled with our strong contract negotiation experience, we always ensure we maintain the expected quality of our acquisitions. Conservative gearing We avoid high risk exposure by gearing our assets to a maximum of 55% of the value of the property. The current gearing across our existing portfolio is 38%. By servicing an interest-only debt which is secured only by the property, we can maximise the yield and the capital growth on the equity invested. It also means we are less exposed if interest rates rise. We take a long term view Trusts are set up for initial fixed periods of 5 8 years. At the time of expiry, we give investors the option to sell down the assets, or elect to continue which is often the case as investors become comfortable with the ongoing distributions. It s all about you At Mair Property Funds, we pride ourselves on offering personalised service to each of our investors. We take the time to explain what s going on and we make ourselves available to answer any questions. Aside from offering superior returns and capital security, good communication is one reason people choose and stay - with us. 6 OUR INVESTMENT PHILOSOPHY

7 We have proven success in acquiring low risk, high quality assets with strong financial growth and investment returns. OUR INVESTMENT CRITERIA + Targeted asset classes, sector specific + Strong tenants and lease security + Key demographic locations + Below replacement costs + Commercial zoning + Utilitarian building design with modern building specification + Value-add potential + Development opportunities + Distributions paid from income + Conservative debt gearing + Asset value range of $5m - $35m + Forensic Due Diligence conducted

8 A diversified range of quality investment opportunities. At Mair Property Funds, we ve got our finger on the pulse. Our team of experienced professionals is always actively engaged with the market and our established network to seek and identify high-quality opportunities, both in Western Australia and across the country. The MPF difference is in the depth and breadth of our research. We regularly analyse properties for sale against a detailed set of investment criteria and always obtain independent valuation reports as part of our acquisition process. We only progress to full due diligence if a particular property satisfies our vigorous requirements. 8 OUR PORTFOLIO

9 Investors receive consistent quarterly distributions from income (not capital) Mair Property Funds currently manages more than $183m of commercial property assets on behalf of its investors, delivering distributions of 11.8% across its portfolio all paid from income rather than capital. Our assets are held over 5 syndicates and 12 trusts, incorporating 38 properties. Talk to us about investing in a diverse suite of assets that provide capital security with an above-average return. A-Grade tenants, future-driven tenancy. Our 38 properties comprise of more than 88 quality tenants. We apply a strong discipline to tenant strategy making sure we monitor and pay attention to key industry trends and direction to ensure our tenants can support and align with both shortterm requirements like rent accountability, and long-term performance objectives. 73% of these tenants are either multinational or national corporations, or are listed on the Australian Stock Exchange. Income returns across a range of property sectors. Investors rely on our proven approach, passion and expertise to buy strong investment properties at the right price that will deliver secure income as well as capital growth. MPF s investment portfolio includes a healthy mix of property sectors that provide diversified income returns. High yielding industrial assets comprise 33% of the portfolio, a good mix of retail assets and about 4% is attributed to the development sector. 2% Tenancy Mix Sector Allocation Income 1% 4% Retail 25% 43% Multinational National/ASX Listed Private Business 33% 40% Large Format Retail Industrial Office/Medical 30% Vacant 11% 11% Vacant Development

10 Delivering strong, leading performance on every level. SUPERIOR RETURNS KNOWLEDGE AND EXPERTISE + Delivering a return on your investment is our highest priority. To date, our investors have enjoyed an average Internal Rate of Return of 14.2%p.a., surpassing industry benchmarks. QUARTERLY DISTRIBUTIONS + Don t wait for your returns. Our income distributions are paid quarterly to maximise your investment cash flow. CAPITAL SECURITY + With national and ASX listed tenants and low loan-to-value ratios, you can be confident that your capital invested is secure and stable. + Our specialist knowledge allows us to see opportunities and risks in our portfolio, and to act decisively to maximise the end result for our investors. PERSONALISED SERVICE + Personalised service Don t get lost in the crowd. As a boutique firm, we offer direct access to our asset managers and team to all our investors and welcome the opportunity to speak with you about your investment. REGULAR COMMUNICATION + Let us keep you up to date on your investment and the wider commercial property market with quarterly written updates and special events for our clients.

11 Solid and consistent investment returns. History shows we outperform other asset classes. 42,000 Across all MPF syndicates and trusts, our portfolio of commercial properties has achieved an average internal rate of return of 14.2% p.a. (income plus capital growth). Excluding capital gain, current income distributions to investors across all funds under management is 11.8% on the initial investment. Average annual capital growth since June 2002 is 5.4% with a total growth of 46% of initial equity invested. Total Return - All Property (per $10k invested) Over the last 10 years, MPF has delivered strong and sustainable returns that outperform major benchmark indices. We contribute to the Investment Property Databank, which enables our performance to be clearly measured. This reveals the superior performance of our returns from commercial property when compared with other asset classes, as well as unlisted and listed property trusts and equities. 300 Total Returns - MPF All Property Vs Asset Class Performance Indices 34, , ,000 0 MPF All Returns Direct Property Index Bonds - J.P.Morgan 7-10 Year Inflations (CPI) 10,000 Unlisted Property Trusts (inc MPF) Equities Property Equities An investment of $10,000 in June 2002, applied across all syndicates and trusts managed by MPF, would have grown to a total return of just under $42,000 by June Our careful and selective approach to acquisitions and asset management is a key factor in our ability to outclass the competition. OUR PERFORMANCE 11

12 A wealth of experience. The team at Mair Property Funds is passionate about helping investors accelerate their wealth through commercial property. Our people are leaders in their field, but they also care. Approachable and informative, they consistently put investors best interests at heart. Directors and Management Team Damian Collins CHAIRMAN Damian is the founder and Managing Director of Momentum Wealth. He has more than 20 years experience in the property and finance industries and brings a strong vision to Mair Property Funds. A successful and respected property investor, Damian has a Bachelor of Business Degree and a Graduate Diploma in Property. He is a member of the Institute of Chartered Accountants in Australia, the Financial Services Institute of Australasia, the Mortgage Industry Association of Australia and the Australian Institute of Management. John Mair DIRECTOR John established the real estate business known as Mair & Co. in John has specialised in property investment, development and management. Since 1966 John has been involved with the establishment of over 35 private syndicates and unit trusts to develop and/or invest in property. John has held a Real Estate and Business Agent s License in Western Australia for over 35 years. John is a member of the Real Estate Institute of Western Australia. 12 OUR TEAM

13 David Ellwood MANAGING DIRECTOR David is a highly experienced property professional with experience in a broad range of commercial real estate transactions across Australia. His previous roles include Director of Asset Management at a major real estate business, Portfolio Manager for a large property fund and Asset Manager of a Corporate Estate. He holds and Bachelor of Science Degree and is a Certified Property Manager. Jennifer Wakeman DIRECTOR Jennifer is the co-founder and General Manager of Momentum Wealth. She has a Master of Business Administration (MBA), a Bachelor of Communications Degree (Public Relations) and a Diploma of Property Services (Agency Management). Alex Lambert ASSET MANAGER Alex is responsible for the asset management of the trusts and syndicates which are held within MPFL s property portfolio. Alex has fourteen years experience in the property industry in both the U.K and Australia. He has held senior positions within private property portfolio s in the U.K and in one of the largest property service providers. Alex has diverse experience in asset management, urban master-planning, investment and sales and leasing. Alex holds a Bachelor of Science in Real Estate Management and is a Member of the Royal Institute of Chartered Surveyors. Emma Everett STR ATEGIC ALLIANCES MANAGER Emma has more than ten years experience in the property industry, serving in a diverse range of roles and more recently as manager of strategic alliances. Emma brings years of experience working closely with external advisors and their clients to cater products, services and information to sophisticated and high net worth individuals, and has built strong relationships within a number of professional industries. BA (Asian Studies), Grad Cert (HRM), Cert IV in Property Services, Cert IV TAE Saundra Weeratunge COMPANY SECRETARY Appointed as Accountant / Company Secretary of the Group in August Saundra is a finance professional with over 25 year s post-qualification experience across a range of industries. She is responsible for all accounting, taxation and financial matters within the Group and is also the appointed Compliance Officer. Saundra holds a Graduate Certificate of Business (Professional Accounting) and is a Member of CPA Australia, an Associate Member of the Chartered Institute of Management Accountants (UK) and an Associate Member of the Governance Institute of Australia. Peter Melling ACQUISITIONS MANAGER Peter is responsible for the implementation of the acquisition strategy and ensuring maximum returns for investors. Prior to joining Mair Property Funds, Peter spent several years advising Local and State Government agencies on acquisition and portfolio strategies across Australia. Prior to this he managed the Queensland portfolio for Goodman. He holds a Bachelor of Property Economics and Masters of Applied Finance from Queensland University of Technology and is an Associate of the Australian Property Institute and sits on the Industrial Committee for the Property Council.

14 At Mair Property Funds, every aspect of our business is driven by a core understanding that our clients success determines ours.

15 Ready to take the next step? Contact our team to learn how we can assist you towards your investment goals. We re passionate about investing in commercial property and proving the results of our investment options, and we have the knowledge and the experience from our success enable you to achieve your investment goals. Please feel free to arrange a personal meeting, or register to receive more information from us on our next investment opportunity or information seminar. T E info@mair.com.au W

16 DISCLAIMER: This information has been prepared by Mair Property Funds as a general guide only. It does not constitute an offer for sale, or solicitation for the purchase of securities, financial products or other investments. It should not be relied upon to determine or to make decisions about the investment objectives, financial situation or individual needs of any person. Mair Property Funds recommends investors seek professional advice before making a decision to invest. Mair Property Funds and its related entities does not make any representations or give any warranties that the information contained within is or will remain accurate or complete at all times and they disclaim all liability for harm, loss, costs, or damage which arises in connection with the use or reliance on the information. Manager, Responsible Entity and product issuer: Mair Property Funds Limited ABN Mair Property Securities Limited ABN AFS Licence