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An exciting opportunity in Perth’s core industrial precinct
distributions*
Target five-year average (years 1-5)
distributions*
Target five-year average (years 6-10)
rent reviews
Fixed rental growth with annual 4% rental reviews
*Target distributions are not promised nor guaranteed and are based upon a number of assumptions. Their achievement is subject to risks. The target return is a target only, not a forecast and it might not be achieved. Please refer to the IM for more information, noting the section on financial information and risks.
Key Information on the Fund
An exciting opportunity in Perth’s core industrial precinct
- Initial five-year average distribution target of 8.0%*
- Targeting increase in average distribution to 9.3%* between years six and ten
- Sought-after industrial location
- Fixed annual rent increases of 4.0%
The Westbridge Kewdale Property Fund is a single-asset fund offering investors an attractive five-year average target distribution of 8.0% per annum, increasing to 9.3% between years six and ten*.
Initial distributions of the Fund will commence at 7% p.a.*, with the income growing throughout the term. The Fund will be for a 10-year term with potential for earlier divestment in the event that capital growth is favourable.
The asset being acquired is a high demand warehouse facility on a 1.26 ha corner site in Perth’s core industrial precinct of Kewdale. The property is underpinned by a brand-new 10-year lease whereby the tenant will be responsible for all outgoings including capital expenditure.
The lease benefits from fixed annual reviews of 4.00%, offering sustained future income growth for the Fund.
Equity Raise: $7m | Minimum Investment: $100,000
Eligibility: Open to wholesale investors
Property details
Address
169 Kewdale Road, Kewdale WA
Land Area
1.26ha
Land Value
Approx. 65% of purchase price (based on recent comparable sales)
Lease
10-year lease with fixed 4% annual rent reviews
Tenant
Magna Tyres Australia – a wholly owned subsidiary of global tyre manufacturer and distributor, Magna Holdings B.V.
Unrivalled industrial location
The asset is located at 169 Kewdale Road in Kewdale – one of Perth’s most highly regarded core industrial precincts, and home to major industrial occupiers including Linfox, Coca Cola, PEP Transport, Toll, Fujifilm, and CTI Logistics.
This area is sought after by industrial occupiers and last mile distributors due to its strategic proximity to key transport infrastructure including Leach Highway, Tonkin Highway, Perth airport, the Perth CBD and Kewdale Intermodal Freight Terminal.
Prime Site
Occupying a prominent 1.26ha corner site, the property comprises a highly functional workshop/warehouse facility with newly refurbished open plan office accommodation.
Property Highlights
- The asset is underpinned by high underlying land value, equating to approximately 65% of the purchase price.
- The property is being acquired circa 20% below replacement cost.
- The asset benefits from extensive frontage to the high-traffic Kewdale Road, with over 14,000 passing vehicles daily (Main Roads WA).
- The significant frontage to Kewdale Road offers future repositioning potential to yield a higher capital value.
- The site benefits from full drive around access for efficient vehicle circulation, and a low site coverage of 31%.
Tenancy Details
The property is leased to Magna Tyres Australia – a wholly owned subsidiary of Dutch global tyre distributor and manufacturer, Magna Holdings B.V., who operate in over 130 countries globally. The company offers off-the-road tyre services across an array of industries including mining, ports, construction, and agricultural.
The Magna Tyres Group acquired Australian-based company Fennel Tyres International in 2021 recognising the demand for high quality off the road tyres in Australia. Fennell Tyres International provides on-site earthmover and Truck tyre services for mining, transport and civil contracting operations and equipment.
Register to hear about our upcoming investment opportunities
Due to overwhelming demand, expressions of interest for this Fund are now fully subscribed. If you would like to be notified of future investment opportunities from Westbridge Funds Management, please complete the form below: