519
%
Total Return (Net of Equity Invested)
155
%
Uplift in Asset Value
14.6
%
IRR (Internal Rate of Return)
Overview
Launched in 2004, the Baile Road Syndicate presented our clients with an opportunity to invest in a high-demand warehouse facility situated in Canning Vale, one of Australia’s prime industrial precincts. The investment case was driven by the asset’s strong fundamental attributes, underpinned by its modern specification, excellent connectivity to Perth’s major road networks, and sought after industrial location.
Our goal was to leverage these strong characteristics to provide regular passive income to investors through a long-term hold strategy, with potential for capital appreciation over time.
Fund Timeline
Active management was a critical aspect of the Syndicate’s long-term performance. While originally designed and occupied by Kimberly Clark, Westbridge managed the property through a tenancy change to MinAnalytical in 2010 – at the time a part of Ausdrill.
When the tenant was later acquired by ASX-listed company, ALS Global, we worked closely with them on adapting the asset to their evolving needs, facilitating the installation of specialist machinery to solidify their commitment to the property.
With the tenant well-embedded to the asset, and having closely monitored recent growth in Perth’s industrial market, we saw a prime opportunity to capture these conditions through an approaching market review in November 2023.
During the review, we successfully negotiated with the tenant to re-set the lease on the property to $750,000 per year, marking a 20% uplift in rental income.
Outcome
Following the significant upside from the market rent review, Westbridge saw the opportunity to capitalise on the asset’s increased value to secure a strong exit for investors. We successfully divested the asset for $12.3 million in June 2024 – marking a significant 155% increase on the initial purchase price. Factoring in both capital uplift from the sale and income distributions across the Syndicate’s term, the Syndicate delivered a total return of 519% to investors, or an internal rate of return of 14.6%.
Past performance is not a reliable indicator of future performance. Performance comparisons are provided purely for information purposes only and should not be relied upon. Westbridge Property Securities Ltd ABN 28 091 623 862. AFS Licence 238386.
As a result of an initial $100,000 investment, investors received a total return of $519,000 over the investment period, net of their initial equity.
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