M/Group Moves East With Acquisition

An over-subscribed property syndicate with more than 90% repeat investors has enabled Perth-based property company, M/Group, to secure the acquisition of Wodonga Plaza in regional Victoria for over $43 million.

It represents the M/Group’s second regionally located shopping centre acquisition from Vicinity Centres, and its first step into growing an asset portfolio in the eastern states.

M/Group was established in Western Australia over 15 years ago and has evolved into a diversified property company that offers investment opportunities across land, residential, construction and income producing assets.

M/Group Managing Director, Mr Lloyd Clark, says the company’s targeted approach to identifying regionally located assets with good lease covenants and value-add potential has attracted significant investment interest from those looking for more than just a passive vanilla return.

“Every company aspires to having a network of investors that trust what they do and how they do it. We are really excited to be taking this group of loyal and new investors into the eastern states,” he said.

“Rather than target fully leased assets at capped rates of 5% – 7%, our interest is in securing properties that not only offer excellent income but also present development, refurbishment or lease re-positioning potential with the aim of achieving capital uplift as well as delivering excellent cash flow income. It is a similar strategic and considered approach we take across all our property activities and historically we have delivered quality investments and good returns.”

Wodonga Plaza attracted a sale price of $43.5 million, of which (circa) $26 million was raised through investment; M/Group’s largest capital raising to date.

The sale closely followed the company’s acquisition of the Albany Brooks Garden Shopping Centre in Western Australia earlier this year. In just over six months, M/Group has accumulated (circa) $70 million under management in income producing funds that yield an average return of 10% plus significant potential for capital upside.

“Wodonga Plaza is a great opportunity in a great regional city that is the gateway to Victoria from NSW. It is currently and will continue to be the largest centre in the region and we have already secured a new 10-year lease with Best and Less with multiple other tenant negotiations underway,” Mr Clark continued.

M/Group’s investment model utilises its Australian Financial Service License to make new opportunities available to a broader market that may not traditionally have access to this investment class.

Wodonga Plaza sits on approximately 4.4ha on island site with 4 Street Frontages and gross lettable area is some 17,200 sqm. Key anchor tenants include Target and Coles, with three current mini majors Amcal, Reject Shop and Best and Less, and around 55 specialties stores.

M/Group targets tenanted assets Australia-wide with a value proposition of around $10 million to $50 million. The success of this recent syndicate has fast tracked the release of its next syndicate where a similar response is expected.