Westbridge Tamworth Property Fund

Now Open for Investment

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Invest in a Coles-anchored neighbourhood retail centre

7.0 %
per annum*

Target annual distribution paid monthly

11.5 %
IRR*

Target internal rate of return

5
years

Target timeframe for the Fund

*Target returns are not promised nor guaranteed and are based upon a number of assumptions. Their achievement is subject to risks. Please refer to the IM for more information, noting the section on financial information and risks.

Key Information on the Fund

  • Coles-anchored neighbourhood retail centre in NSW
  • Income distributions of 7%* paid monthly
  • Five-year fund targeting an IRR of 11-12%* (what’s IRR?)
  • Potential to add value to the Centre to drive income and capital uplift 

The Westbridge Tamworth Property Fund is an exciting opportunity to invest in an established neighbourhood retail centre located in the thriving regional city of Tamworth, New South Wales.

The Centre offers a diversified income stream anchored by a full-service Coles Supermarket, with complementary tenants including a pharmacy, dentist, Domino’s, and various serviced-based operators.

Coles has recently exercised a new ten-year lease option, with the Centre’s specialty tenants subject to fixed rent reviews to provide sustained income growth for the Fund.

In addition, there are several opportunities to add value to the Centre to drive further income and capital uplift.

The Fund is targeting an attractive initial distribution of 7% per annum (paid monthly), with a target internal rate of return of 11-12%*.

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Asset Overview

A diverse tenant mix anchored by Coles

Northgate Shopping Centre is an established neighbourhood centre anchored by a full-service Coles Supermarket. The Centre also features a complementary mix of 13 independent and national retail specialities across a diverse range of sectors including a pharmacy, dentist, food and beverage, and service-based operators.

Approximately 44% of the total income and 63% of the asset’s gross lettable area is attributable to Coles, who have recently extended their lease by ten years taking the expiry to 2033.

Opportunities to add value

A number of opportunities to add value to the Centre have been identified, offering potential to increase income and capital uplift. These include:

  • Visual improvements to the Centre to assist with tenant mix optimisation;
  • Options to boost revenue through solar power; and
  • Potential for the development of a quick-service retail tenancy.

1.3ha site

With excellent street frontage to one of the main arterial roads into Tamworth City Centre

Purchasing significantly below replacement cost

The property will be purchased up to 40% below current replacement cost

6.4-year WALE

Weighted average lease expiry by income

44% total income

Underpinned by a ten-year lease to Coles Supermarket, who have entered turnover rent providing potential for income uplift

Fixed rent reviews

84% of income across the specialty tenants is subject to either a 4% or 5% fixed rent review

Value-add opportunities

Providing potential for income and capital uplift

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Property Location

The asset is located within the thriving regional city of Tamworth – the third largest inland city in regional New South Wales, and the main service centre for the New England region.

This is a high growth catchment with a current population of 66,454 (Tamworth Regional Council), forecast to increase by 22% by 2041. This growth is supported by a number of key infrastructure projects including the new University of New England campus, the Narrabri Gas Project, the Qube intermodal terminal, and the development of approximately 3,773 residential lots in the surrounding catchment (Tamworth Regional Council).

Tamworth is well-positioned on the regional highway network, with the New England Highway connecting Newcastle in the south with Toowoomba in the north, and the Oxley Highway linking east through to the popular region of Port Macquarie and west to Gunnedah.

Major Tenant

 

Coles Group Limited is an ASX Top 20 company operating some of Australia’s most well-known retail chains. Its flagship supermarket chain, Coles, is a full-line supermarket with over 840 stores nationally.

During FY23, Coles Group reported total sales revenue of $40.5bn across its retailers (Supermarkets, Liquor, Fuel and Financial services) with a net profit after tax of $1.0bn. Within the supermarket’s platform, Coles reported a total sales revenue of $36.7bn in FY23.

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Equity Raise: $12m | Minimum Investment: $100,000
Eligibility: Wholesale Investors (what’s a wholesale investor?)

Register your interest in the
Westbridge Tamworth Property Fund

Complete the form below to register your interest in this Fund and receive a copy of the IM when available:

    By returning this EOI form to Westbridge Funds Management, you will receive a copy of the Information Memorandum (IM). A completed EOI form is neither binding on you to subscribe for units, nor does it guarantee a full allocation of units pursuant to the issue of the IM. An allocation of units is subject to completion and receipt of an Application Form as contained in the IM. The Issuer will allot the units subject to availability following closure of the Offer and subsequent scaling (if any).

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