How to Start Investing in Commercial Real Estate

How to get into commercial real estate with managed funds

Commercial property has long been regarded as a popular investment in Australia, with many investors drawn to its strong rental yields and income-producing potential.

However, with high-quality commercial properties typically priced in excess of $5 million, investing in commercial real estate directly is rarely an option for the individual investor.

This is why many choose to start investing in commercial property through syndicated investments known as property funds.

Westbridge Funds Management has been helping investors grow their wealth through commercial property funds for more than 20 years.

Our managed funds provide investors with access to high-quality commercial properties offering regular income returns and potential for capital growth from as little as $50,000.

Commercial Guidebook Download

An introduction to commercial property

In this downloadable guide, our property experts share the key things you need to know before getting started in commercial property.

Download your free guide to find out:

  • Where commercial property fits within the broader investment journey
  • The common commercial property sectors, and what drives them
  • How to get into commercial real estate investing
  • The different ways to invest in commercial property in Australia
  • The key factors to consider when assessing commercial property opportunities

How property funds work

For those getting started in commercial real estate, property funds offer a simple and more affordable entry point.

A commercial property fund is a form of pooled investment whereby investors purchase a share of a commercial property (or properties) that are held in a separate structure, usually a unit trust.

The fund, along with all aspects of acquiring and managing the assets within it, is professionally managed by a team of property investment experts.

Investors usually receive passive income distributions – typically monthly – from the fund relative to their unit holding (i.e. how much they have invested), as well as their portion of any capital growth realised at the end of the fund.

There can be several potential advantages to the fund structure:

Lower capital outlay

Due to their syndicated structure, funds can enable investors to start investing in commercial real estate at a significantly lower capital outlay than investing alone. As a guide, minimum investments in our property funds at Westbridge Funds Management begin at $50,000 for some of our retail funds, while others start at $100,000.

Passive returns

With managed property funds, everything from the acquisition of the fund’s assets to the ongoing management and fund administration is overseen by the fund manager. This can open up a broader range of investment opportunities through the fund manager’s industry network and expertise, while enabling investors to enjoy a passive approach to their investments.

Diversification

With lower capital requirements, managed funds can enable investors to spread capital across multiple funds and investment types, rather than concentrating all capital on a single asset. This can, in turn, help to reduce risk by enabling greater opportunity for diversification.

Access to high-quality tenants

By enabling investors to pool their capital, property funds can allow the purchase of larger-scale assets, often leased to reputable blue-chip tenants. The tenants in our funds at Westbridge Funds Management range from national and ASX-listed brands, to local retailers, such as specialist medical tenants.

Non-recourse debt

When investing in property funds, all borrowings are entered into by the fund and not by the individual investor. This means that unit holders won’t be subject to personal guarantees (i.e. they won’t be required to provide any bank security, such as their home or other assets) and are not liable beyond the cost of their own units. For this reason, property funds can be popular as an investment option for self-managed super funds, which do not allow for recourse lending.

Investing with Westbridge Funds Management

At Westbridge Funds Management, we’ve been helping investors grow their wealth through commercial property funds for over 20 years.

Our funds provide investors with access to a broad range of opportunities, from commercial properties with a value-add focus, to multi-asset portfolios designed to provide our clients with regular, long-term income.

All our funds are underpinned by our investor-first approach. We believe that transparency and communication are critical in delivering a better experience for our clients. Our consistent performance and exceptional service levels are the key reasons why clients continue to invest with us – time and time again. On average, our investors maintain over three holdings across our funds – which reflects their confidence in our ability to help them succeed in commercial real estate.

Please contact our team for more information on how begin investing in real estate with Westbridge.

 

Our Latest Commercial Property Funds

122-128 Magnesium

How to Get Started in Commercial Real Estate Investing Today

At Westbridge, we understand that getting started in property investment can be a daunting prospect.

Our goal is to simplify the process and make your start in commercial real estate investing as clear and achievable as possible.

We take the time to gain a clear understanding of your current financial position, goals and investment strategy, before talking you through the investment options that align with your unique situation.

Backed by expert knowledge, meticulous research, and a proven track record, we help our investors build long-term wealth through real estate.

Whether you’re seeking guidance on how to get into commercial property, or you’re an experienced investor looking to expand your portfolio, we are here to support you at every stage.

Contact us to book a free consult and learn how to start investing in commercial real estate via our funds.

Register to hear about our future opportunities

Register below to receive updates on upcoming opportunities across our property funds, or contact our team to learn more about our investment offering.

  • This field is for validation purposes and should be left unchanged.
  • By providing your email address, you are consenting to receive marketing communications from Westbridge Funds Management in the future, on the understanding that you have read and agree to our Privacy Policy and that you can opt-out at any time.

Newsletter

Subscribe to get our expert insights delivered straight to your inbox.

Subscribe to Newsletter

  • This field is for validation purposes and should be left unchanged.