404 Orrong Road, Welshpool WA
TARGET DISTRIBUTION PAID MONTHLY IN THE FIRST YEAR*
3-YEAR TARGET AVERAGE DISTRIBUTION*
UNDERPINNED BY NATIONAL TENANTS
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.
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.*
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.
$38.70 million asset purchase
Single Asset Wholesale Fund.
6.75% initial yield
Acquiring below replacement cost.
Diverse income stream spread across 11 tenancies and a range of industries and sectors.
Significant core land holding, with a high underlying land value.
Average number of vehicles passing this high profile site each day on Orrong Road.
Gross lettable area.
Weighted Average Lease Expiry.
- 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.
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.
Tenancy and Leasing Information
Kennards Hire is Australia and New Zealand’s largest family-owned supplier of high quality, hire equipment. With more than 180 branches across Australia and New Zealand, the company hires out equipment suitable for DIY through small-medium projects to large construction sites. The Kennards operations at the 404 Orrong Business Estate serve as a service, maintenance and storage hub for their Perth hire business and is a 10-year new lease.
Listed on the ASX, MMA Offshore is one of the largest marine service providers in the Asia Pacific region. Employing over 1,100 people, MMA Offshore owns and operates over 30 offshore vessels capable of supporting a range of marine and subsea projects.
Bridgestone Australia is a subsidiary of one of the world’s largest tyre and rubber companies, Bridgestone Corporation. The company owns and operates over 330 retail stores across Australia, employing approximately 830 people.
City Electric Supply
City Electric Supply supplies and distributes electrical equipment throughout Australia and globally. The company operates close to 900 branches throughout the United Kingdom, Ireland, U.S.A., Canada, Australia and Western Europe.
United Petroleum is an independent, Australian-owned petrol and convenience company which specialises in the retail and wholesale fuel markets, convenience stores and ethanol manufacture. The company operates over 320 service stations across Australia.
Founded in WA in 1976, Chicken Treat has over 60 outlets within Western Australia, and two in Central Queensland. The company provides a range of rotisserie chicken, fried chicken, and burger meals. Part of the Craveable Brands group which operated 580 restaurants Red Rooster, Oporto, and Chicken Treat restaurants across Australia.
Jesters was founded in Perth in 1997 and now operates 33 stores across Western Australia as the state’s largest specialist pie retailer.
Quokka Coffee is a local café operator, priding itself on serving excellent coffee, Australian breakfast staples and a wide range of beverages.
Living Ponds was established in 2012 and specialises in water gardens, offering services and products ranging from pond maintenance to fish and fish products.
Infrared Services is one of WA’s leading electrical contractors, delivering solutions for industrial and commercial sites across Western Australia.
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