519
%*
Total Return (Net of equity invested)
14.6
%*
Internal Rate of Return
*Past Performance is not a reliable indicator of future performance.
Fund Mandate
Strategic investment in Canning Vale industrial precinct
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 – factors which made it attractive to a variety of tenants.
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.
Location
50 Baile Road, Canning Vale WA
Purchase Price
$4.8 million
Land Area
15,289sqm
Tenants
Kimberley Clark (later replaced by MinAnalytical)
Building a strong exit position
Active management was a critical aspect of the Syndicate’s long-term performance. While originally designed and occupied by the existing tenants, Kimberly Clark, Westbridge managed the property through a leasing 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, making 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 Syndicate investors.
We successfully divested the asset for $12.3 million in June 2024 – marking a significant 155% increase to 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.
An investor with a $100,000 investment received $519,000 in total returns, net of their initial equity.
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