Welshpool Property Fund

Fully Subscribed

404 Orrong Road, Welshpool WA

7.5 %
p.a.*

TARGET DISTRIBUTION PAID MONTHLY IN THE FIRST YEAR*

10 %
target average*

3-YEAR TARGET AVERAGE DISTRIBUTION*

87 %
of income

UNDERPINNED BY NATIONAL TENANTS

*Forecast 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

A unique opportunity for property investors

  • 10% p.a. average target distribution over 3 years*
  • Key location with diverse tenancies
  • Significant additional repositioning strategies including near-term development options and potential for future subdivision

Westbridge’s Welshpool Property Fund is a unique opportunity for investors. The Fund is acquiring a 55,723 sqm site with existing tenancies in the core Welshpool industrial precinct.

The acquisition is underpinned by its strong underlying land value within immediate proximity to Perth Airport, Kewdale Intermodal Freight Terminal, and Perth’s burgeoning arterial road network and is currently leased with a 4.9-year WALE across 11 tenants. The property also holds potential for significant repositioning work through near-term development options.

The Fund is now fully subscribed.

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The asset has been acquired via an off-market private placement and offers investors 7.5% distributions Year 1, with a target of 3-year average distribution of 10% p.a.*

Growth-Focused Strategy

The Fund Strategy is to derive income from the existing tenancies through tenancy retention, while adding value through significant repositioning work to be undertaken, which includes:

  • Near-term development opportunity of surplus land for a brand new 3,000 sqm warehouse in an undersupplied market (as a separate title, alternative sell down options will also be considered);
  • Working with the existing tenants to extract value and re-set leasing;
  • Asset enhancement opportunities to increase lettable area and income;
  • Future potential for subdivision; and
  • Longer term redevelopment land fronting Orrong Road.

Key Attributes

$38.70 million asset purchase

Single Asset Wholesale Fund.

6.75% initial yield

Acquiring below replacement cost.

11 tenancies

Diverse income stream spread across 11 tenancies and a range of industries and sectors.

100% occupied

Fully leased.

55,723 sqm

Significant core land holding, with a high underlying land value.

52,963 vehicles

Average number of vehicles passing this high profile site each day on Orrong Road.

9,930 sqm

Gross lettable area.

4.9-year WALE

Weighted Average Lease Expiry.

Raising Information

FUND CLOSED
Total Raise

$21,000,000

Minimum Investment

$100,000

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The Property

Investment Highlights

  • A diversified infill industrial estate in Perth’s premier industrial market providing 9,930 sqm of functional improvements.
  • Irreplaceable landholding of 55,723 sqm with underlying land value representing approximately 64% of overall transaction value.
  • Immediate value add opportunity through the development of vacant pad site component into a brand-new warehouse facility.
  • The asset will be purchased at a discount to replacement cost.

Property Description

404 Orrong Road comprises a 55,723 sqm multi-tenanted infill industrial estate strategically located in Perth’s pre-eminent industrial and logistics precinct. The estate benefits from over 330m of frontage to Orrong Road and enjoys efficient ingress and egress through a total of five crossovers.

The on-site improvements comprise recently refurbished warehouse accommodation, a modern high quality two-storey office and training facility, a fully operational service station and a new showroom development. The balance of the site comprises sealed bitumen internal estate roads and hardstands, and a vacant pad site to the rear fronting Colin Jamieson Drive.

The Welshpool industrial precinct remains WA’s blue-chip industrial sub-market due to its unmatched accessibility and convenience. The area is well suited to both last mile logistics and traditional distribution/logistics operators with only 10km to the Perth CBD and a large surrounding residential catchment.

Property Location

Tenancy and Leasing Information

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