Westbridge Funds Management, a Western Australia-based property fund manager, has acquired a modern manufacturing facility in the prime industrial precinct of Wacol, southwest of the Brisbane Central Business District.
The $14.5 million acquisition of the 1.6-hectare site is backed by a new 15-year triple net lease to EGR Group, a global designer and manufacturer of automotive, building, and commercial products, and expands the Westbridge Diversified Fund No.4’s holdings portfolio.
“The new 15-year triple net lease will deliver regular income to unitholders in keeping with the Fund’s mandate, and the location in one of Brisbane’s premier industrial areas brings additional diversity to the Fund’s existing commercial portfolio,” said Simon Worth, head of capital transactions at Westbridge Funds Management.
The new manufacturing site has a gross lettable area of 7,254 sqm comprised of multi-level office space and 6,315 sqm of modern, clean-span warehousing. It also features dual crossovers and 80 m of frontage to Coulson Street, Wacol– one of Brisbane’s premier industrial areas.
“Our analysis confirms the acquisition price is well below replacement value which, combined with constrained supply, allows scope for future capital growth. Together with the upcoming settlement of Brabham Common, the Wacol property will build on the Fund’s exposure to resilient sectors of industrial and non-discretionary/service-based retailers,” Worth said.
The acquisition of the property follows Westbridge Diversified Fund No.4’s pending purchase of Lot 3, Brabham Common, Perth, a modern convenience retail centre located in Perth’s northwest growth corridor.
Westbridge Diversified Fund No.4 targets a portfolio of $150 million in assets. To date, the fund boasts a property portfolio that includes an industrial facility in Broadmeadows, Victoria, which is leased to Holman Industries; a retail centre anchored by Dan Murphy’s in Southern River, Western Australia; an industrial warehouse in Canning Vale, West Australia; and a high-profile industrial facility in South Guildford, Western Australia.
“Our diversified commercial property funds have historically held strong appeal with income-focused investors due to their ability to provide a regular income stream in the form of monthly distributions,” said Damian Collins, chair of Westbridge Funds Management.
“By building a multi-asset portfolio of commercial properties spread across different locations, sectors and tenancies, we are able to generate multiple income streams within the one investment, which helps to support consistency of income returns for our investors.”
