Westbridge settles flagship property, acquires second asset

7 December 2021

Westbridge Diversified Property Fund No. 4 has settled on its seed property for the Fund in Broadmeadows, VIC and launched a second round of fund-raising for the purchase of a second asset in Canning Vale, WA.

• Westbridge Diversified Fund No. 4 has passed the settlement milestone on the fund’s seed asset – two adjoining industrial distribution facilities in Broadmeadows, Victoria.
• The fund is in the process of acquiring a second industrial property at Canning Vale WA.
• Westbridge Diversified Fund No. 4 is targeting a $100-150 million property portfolio through the purchase of up to 12 assets.

Leading WA-based property funds manager – Westbridge Funds Management, today announced that the Westbridge Diversified Fund No.4 has successfully taken ownership of its first asset in Victoria following settlement on 3 December 2021. The property was purchased for $15.36 million.

The property is comprised of two adjoining industrial distribution facilities on a 1.43-hectare site located at 125 and 145 Northcorp Boulevard, Broadmeadows, VIC. Both assets were purchased on a 7-year sale and leaseback to Holman Industries – a key supplier of hose pipe and reticulation products to leading outlets including Bunnings, Tradelink and Reece.

The Westbridge Diversified Fund No.4 is currently in the process of acquiring a second asset – a recently upgraded warehouse logistics facility at 41-43 Baile Road, Canning Vale, WA. The 23,177 square metre site occupies a commanding position in one of Perth’s most established and highly regarded industrial precincts, and is fully leased to J Blackwood & Son (Blackwoods), a wholly owned subsidiary of Wesfarmers Limited (ASX:WES).

Mr Alex Lambert, Head of Commercial Funds at Westbridge, said, “The recent settlement of the Broadmeadows property, and the acquisition of the Canning Vale facility are in line with the Fund’s goal of building a $100-150 million portfolio featuring up to 12 high-quality commercial properties diversified by state, asset class and number of tenants.

“We envisage the portfolio being diversified across commercial sectors including industrial, medical, large format retail and more. A core goal is to acquire properties with strong lease covenants, targeting quality national, international, and publicly listed tenants.”

Expressions of interest are now open for the Westbridge Diversified Fund No.4 with a $8.75 million minimum capital raising.

The Fund has a distributions target of 6.5% for FY22, and will continue to actively seek commercial assets that support a target distribution of 7.0% in FY23. Along with robust yields and the potential for healthy capital growth, investors will also benefit from depreciation benefits and tax advantaged income distributions.