I have committed my personal capital into this property deal, paying a forecast 13-15% total return and 8%-9%
I have committed some of my personal family capital into this transaction, it's paying c. 8% per annum and a total forecast return of c. 13-15% (IRR) on an annual basis over the 5-year term.* Based on my understanding of the property fundamentals of the deal I believe there is a high probability of outperformance (on a risk-adjusted basis) to this articulated base case.
Some deals, this one included, although may have strong property fundamentals do not meet the full set of investment criteria for MP Funds Management, in this current market our high teens or higher base case IRR threshold tends to be the factor that means we will forgo an investment.
However, in some deals, even though they don’t meet our MP Funds Management criteria, I or the other MP Group executive team members will still co-invest, generally due to the defensible property fundamentals and the high probability of outperformance on a risk-adjusted basis - which sometimes the lead Manager does not articulate based on being more conservative. If we at MP Funds Management can clearly see a likely upside investment case that is underpinned by sound property fundamentals but has not been articulated in the Information Memorandum by the lead Manager, we will often decide to invest personally but MP Funds Management will not invest as those upper investment case thresholds need to be clearly articulated in the Information Memorandum for the MP Funds Management mandate to be met for co-investment.
A summary of this transaction is available via the MP Report Professional Subscription here, and the Information Memorandum together with a 15% discount on Manager Performance Fees can be accessed via the MP Report Premium Subscription here.^
You can also contact me directly to discuss the opportunity or reserve an allocation via myp@mpgroupinternational.com
I think at this stage in the market and economy it is valuable to share the information flow on what we believe to be high quality and defensible deals with a high probably of outperformance on a risk-adjusted basis, keeping in mind that this is not investment advice and MP Funds Management has not produced our usual detailed due diligence report on these transactions, which we make available to our investor base when MP Funds Management does underwrite a capital allocation in a transaction.
Mandi Prager
CEO, MP Funds Management
*View the complete Information Memorandum via the MP Report Premium. Sign-in here.
^MP Report Premium is available to Wholesale Investors only. Apply now.
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This communication is not intended to serve as investment advice or an investment recommendation. The content does not take into account your financial objectives, situation or needs. You should do your own research and, if appropriate, obtain independent advice from a suitably licensed professional before making investment decisions.
* Actual investment performance may differ materially from forecast returns.
** Please note that past performance is not a reliable indicator of future performance.
Disclaimer: Each of Golden Goose Capital Pty Ltd, (AR No:1301 947), MP Funds Management Pty Ltd currently (AR No:1301 946) and MP Report Australia Pty Ltd (AR No:1301 948) has been appointed as an authorised representative of Durant Wyot Funds Management Pty Ltd (ABN 41 655 164 864, AFSL No: 537318).