- Fourth asset added to Westbridge Industrial Opportunity Fund
- Melbourne logistics facility delivers strong income profile with built-in annual rent reviews
- Acquisition well-timed against strengthening fundamentals in Melbourne’s industrial market
Westbridge Funds Management has acquired a prime distribution facility in Melbourne’s northern industrial hub of Epping for $24.25 million, marking the fourth asset for its Industrial Opportunity Fund.
The distribution centre, located at 40 Scanlon Drive near Melbourne Airport, represents a significant addition to Westbridge’s expanding industrial portfolio.
The 17,715 square metre property features 9,370sqm of modern warehouse space and is currently leased to GCP Australia and Mission Foods, providing stable income with opportunities for future value enhancement.
Westbridge Chairman Damian Collins said the acquisition aligned with the fund manager’s strategy of securing well-positioned industrial assets with value-add potential in key logistics corridors across Australia.
“This latest acquisition demonstrates our continued confidence in the industrial sector and our commitment to building a diversified portfolio of quality assets for our investors,” Mr Collins said.
“The Epping property is a high-quality modern logistics facility acquired at an attractive initial yield, presenting a compelling counter-cyclical opportunity to capitalise on the structural tailwinds we are seeing in Melbourne’s industrial sector.”
Westbridge Head of Capital Transactions Simon Worth was drawn to the property’s positive income profile.
“The property delivers a strong and reliable income profile, with annual rent reviews of between 3.5 per cent and 4.5 per cent, underpinned by quality lease covenants,” he said.
“Melbourne’s industrial property market is also at an inflection point, with a contracting development pipeline and resilient occupier demand setting the scene for strengthening fundamentals.”
According to Knight Frank’s Australian Industrial Review Q1 2026, Melbourne accounted for 60 per cent of leasing take-up across industrial markets in Sydney, Melbourne and Brisbane in the first quarter of the year.
The Westbridge Industrial Opportunity Fund, which launched in early FY2025, is an open-ended fund focused on delivering a blend of income and value-add opportunities. The Fund now has four properties in its portfolio, collectively worth $110 million, with a geographical spread across Victoria, South Australia, Western Australia and Queensland.
Westbridge Head of Commercial Funds Alex Lambert said the Epping warehouse was acquired at a substantial discount to replacement cost, underpinned by a high underlying land component of 62 per cent.
“While construction costs remain stubbornly high for new buildings, this is creating exciting opportunities to add value to existing assets,” Mr Lambert said.
“The strategy of improving properties to generate higher returns is something we will focus on in our Industrial Opportunity Fund, and the Epping acquisition fits within that approach.”
The Industrial Opportunity Fund remains open for investment, with Westbridge targeting further acquisitions in the coming months.