Westbridge demonstrates confidence in Pilbara housing market

14 December 2021

Westbridge Funds Management has acquired a $12.5 million apartment block in South Hedland, expanding the firm’s holdings in the Pilbara.

• Westbridge has added a $12.5 million 77-unit apartment block to its portfolio of Pilbara properties.
• The purchase price of the complex is estimated to be $22.5 million below the asset’s $35 million replacement value.
• The architect-designed 6-storey complex generates gross rent of $2.3 million per annum.

Leading Perth property investment specialist – Westbridge Funds Management, has acquired a 77-unit apartment building in South Hedland, adding to the existing portfolio of its Pilbara properties.

Purchased at a cost of $12.5 million, the apartment block is a unique 6-storey building designed by Hodge Collard Preston in conjunction with renowned firm Fender Katsalidis and was constructed by Hickory in 2014.

Surrounded by amenities, the modern apartment block comprises a blend of generously proportioned 1, 2 and 3-bedroom fully furnished units.

The apartment building has a desirable and highly strategic central South Hedland location, close to Hamilton Road – one of the main arterial roads leading into South Hedland and connecting to the Great Northern Highway.

The quality of the building and sought-after location underpins a low vacancy rate and gross rental income of approximately $2.3 million per annum.

The $12.5 million purchase price equates to an average of just over $162,000 per unit and is $22.5 million below the building’s estimated $35 million replacement cost.

Westbridge has an extensive track record of taking advantage of market timing, having previously acquired a significant number of houses and villas in the Pilbara at the bottom of the market cycle in late 2019/early 2020.

Damian Collins, Chairman, Westbridge Funds Management, said, “The acquisition of the apartment building has been completed at a very good price for our investors.

“Today’s expensive building costs coupled with a serious shortage of skilled tradespeople, will make it challenging to bring new stock to market in the Hedland region, particularly while prices are still generally well below replacement value.”

“We expect significant increases in property values and gross rents across the Hedland property market. Demand for labour in the region is strong, and companies are actively encouraging more localised workers into the region. A significant number of ongoing projects will sustain the local economy – and continued growth, of Hedland for some years to come,” concluded Mr Collins.