Fully Subscribed
Due to overwhelming demand, this fund is now closed. To be informed about future opportunities, register here.
Target 12% IRR*
(internal rate of return)
Initial distribution target of 6% p.a. paid monthly*
Total Return Focus | Value-add potential | 3 assets with 3-year target timeframe
Open to wholesale investors only
The Westbridge Industrial Total Return Fund is designed to deliver income and capital appreciation via a value-add strategy. This wholesale fund has secured 3 industrial properties in the core Perth industrial precincts of Malaga, Welshpool and Kewdale.
The Fund’s strategy is to reposition the under-performing industrial assets to meet an undersupply in the Western Australian industrial market. The assets have some leasing risks and/or requirements to modernise through refurbishment (with good fundamental underlying attributes) which provides the opportunity to reposition and add value.
The Fund has purchased the initial asset in Malaga and agreed terms to purchase further assets in Welshpool and Kewdale. All three assets are well located in core industrial areas with potential to improve the investments through leasing and capital works. The three assets meet the funds original mandate and no further acquisitions are planned.
*Target returns or distributions are not promised nor guaranteed and are based upon a number of assumptions. The Initial Distribution may vary subject to the Fund strategy, the lease terms and other properties added to the Fund. Income distributions may be withdrawn completely. The achievement of the Target IRR returns are subject to risks. The target return is a target only, not a forecast and it might not be achieved. Please refer to the Information Memorandum (IM) for more information, noting the section on financial information and risks.
Selecting the Right Assets
The Fund has sourced all three assets to be acquired with a total value of just under $30 million; the Welshpool and Kewdale assets will be the final assets of the Fund.
With the Fund focusing on a value-add strategy, through our industrial expertise and active management, each asset acquired meets the Funds key criteria, including:
- Underperforming assets with strong fundamentals;
- Opportunity to add value through refurbishment and/or leasing;
- Acquire properties at or below replacement cost.
There is the opportunity to capitalise on the strengthening Perth industrial market with limited new supply and rising market rents.
The assets being purchased have been specifically selected for their good attributes and additionally, when blended together, offer staggered lease expiries, providing the ability to work through each asset and reset the investment while balancing the income from the other assets.
This is the final raise for the Fund:
TOTAL TARGET CURRENT RAISE: $5,235,000
MINIMUM INVESTMENT: $100,000
Third Asset | Cold storage and food processing facility
3-5 Marchesi Street, Kewdale
The third asset to be acquired by the fund, 3-5 Marchesi Street, is a highly sought-after cold storage and food processing facility in a prime industrial location. The asset is leased to ASX listed, Wide Open Agriculture (ASX:WOA). The company is a regenerative food and agriculture company in Australia which has a market capitalisation of over $40 million and generated a FY22 revenue of $9.77 million, marking a significant increase over the previous FY results. The company stocks products in both Coles and Woolworths supermarkets across Australia and has recently signed various distribution deals across Taiwan, Hong Kong, Macau, the Middle East and Singapore.
The cold storage sector in Australia is experiencing significant barriers to entry with high construction costs and constrained land supply restricting competitive new supply. This acquisition presents the opportunity to secure the existing tenant on a long term lease and capture positive rental uplift following the short-term lease expiry.
Kewdale is one of Perth’s most highly regarded core industrial precincts with the precinct well serviced by all major arterial thoroughfares including Kewdale Road, Leach Highway, Tonkin Highway and Roe Highway.
ADDRESS
3-5 Marchesi Street, Kewdale WA 6105
BUILDING AREA
4,306sqm
LAND AREA
8,480sqm
MAJOR TENANT
Wide Open Agriculture (ASX:WOA)
INVESTMENT HIGHLIGHTS
- Opportunity to secure the existing tenant on a long term lease and capture positive rental uplift following the short-term lease expiry.
- Highly functional food distribution facility with improvements comprising dry storage warehouse, temperature controlled chillers and freezers, and refurbished office accommodation.
- The asset is situated on a commanding landholding with three street frontages in Perth’s premier industrial locality with proximity to major arterial thoroughfares and transport infrastructure.
- The property is fully leased to Wide Open Agriculture (ASX:WOA), Australia’s leading regenerative food and agriculture company specialising in sustainably sourced health foods, meats and pantry staples. The company’s products are stocked in both Coles and Woolworths.
- The current passing rent is below market levels which presents significant positive reversion on lease expiry.
- The transaction is underpinned by approximately 60% land value and will be purchased significantly below replacement cost.
- Two separate titles allow the ability to lease and sell the buildings individually offering flexible exit strategies
- There are limited facilities across Perth with capacity for temperature controlled storage, safeguarding future occupier demand.
Second Asset | Highly Visible Industrial Facility
1A Forge Street, Welshpool
The second asset to be acquired by the fund is located on Forge Street in Welshpool, a highly visible location in one of WA’s primary industrial precincts. The asset is tenanted by Coates, a wholly owned subsidiary of Seven Group Holdings Limited (ASX:SVW). The group employs over 13,500 people globally and generated a FY22 revenue of over $8 billion.
This acquisition offers a significant repositioning opportunity to capitalise on surging market rental growth and historically low vacancy rates. Negotiations are well progressed with incumbent tenant Coates (ASX:SVW), who are currently holding over, to agree a new long term lease with additional capital works to maximise investment value.
Welshpool continues to be WA’s pre-eminent industrial precinct due to its unmatched accessibility and convenience. The area is well suited to a variety of industrial users including last mile logistics and traditional distribution/logistics operators with only 10km to the Perth CBD, 5km to the Kewdale Intermodal Freight Terminal and 7km to the Perth Airport. The precinct is well serviced by all major arterial thoroughfares including Kewdale Road, Leach Highway, Tonkin Highway and Roe Highway.
ADDRESS
1A Forge Street, Welshpool
BUILDING AREA
2,397sqm
LAND AREA
16,715sqm
MAJOR TENANT
Coates – A wholly owned subsidiary of Seven Group Holdings (ASX:SVW)
INVESTMENT HIGHLIGHTS
- A significant repositioning opportunity to capitalise on surging market rental growth and historically low vacancy rates.
- Highly visible industrial facility situated on an irreplaceable landholding of scale with extensive frontage and exposure to Leach Highway of some 94 metres.
- The functional office/warehouse improvements and extensive sealed bitumen hardstand are highly sought after and well-suited to a variety of industrial users
- Strategic land holding in Perth’s premier industrial locality with proximity to major arterial thoroughfares and transport infrastructure.
- The property is fully leased to Coates, a wholly owned subsidiary of the ASX-listed Seven Group Holdings Limited (ASX:SVW)
- Transaction reflects significant land value
- The property benefits from exposure to over 50,000 passing vehicles each day along Leach Highway.
- The low site coverage of just 14% and compelling locational characteristics offers future further development or redevelopment potential.
Location of latest assets (Kewdale & Welshpool)
First Asset (purchased) | Strategically located warehouse facility
133 Beringarra Avenue, Malaga ,WA
The first asset that has been purchased for the Fund, 133 Beringarra Avenue, Malaga has the benefit of a strong income stream for the initial period of the Fund. The purchase, which is below replacement cost, provides significant opportunity to re-set the asset with some refurbishment works and a new tenant on new and longer lease term, driving an increased investment value.
The property is well placed to benefit from a strong industrial market, where tenant demand is expected to increase and supply remains constrained driving rental and capital growth.
The property comprises a 13,813sqm general industrial zoned site improved with a functional modern office/warehouse facility of some 6,867sqm. The warehouse is fully sprinklered with ESFR sprinklers and clearance heights of 8.5m rising to 10.9m. The property features a fully covered loading dock to the rear and is accessible via 6 container-rated roller doors; construction consists of a tilt-up concrete paneling with ground-bearing concrete floor slabs, steel frame and metal clad roof.
ADDRESS
133 Beringarra Avenue, Malaga WA
GROSS LETTABLE AREA
6,867sqm
LAND AREA
13,813sqm
MAJOR TENANT
Hobson Engineering
Established in 1935, Hobson Engineering is a nationally operated business that has grown to become Australia’s leading wholesale supplier of quality fasteners, bolts, nuts, all thread rod, screws, and anchors to the mining, construction, oil, and manufacturing industries. Hobson has grown to operate 7 facilities nationally and has key supply contracts with Bunnings and Blackwoods.
INVESTMENT HIGHLIGHTS
- The acquisition is underpinned by circa 60% underlying land value and is being purchased significantly below replacement cost.
- The property is currently leased to Hobson Engineering, a national operation with 7 facilities across Australia, specialising in steel bolts and fasteners.
- Favourable rent review mechanisms to capitalise on strong forecasted short-term inflation.
- Situated on a prominent and accessible land holding of 13,813sqm in close proximity to Reid Highway and the recently upgraded Tonkin Highway
Fully Subscribed
Register below for Future Opportunities
Due to overwhelming demand, this Fund is now closed. To be informed about future opportunities, please register below.