Westbridge Industrial Total Return Fund

Register Interest

INVEST

Total return focus

Target 12% IRR*

Target average annual return

 

Value add with monthly income distributions | Maximum 3 assets with a 3-year timeframe

Initial distribution target of 6% p.a.*

The Westbridge Industrial Total Return Fund is designed to deliver income and capital appreciation via a value-add strategy. This wholesale fund seeks to achieve this objective by acquiring up to 3 industrial properties in core industrial precincts throughout Perth.

The primary purpose is to secure under-performing industrial assets and reposition them to meet the undersupply in the market. The assets may have some leasing risks and/or requirements to modernise through refurbishment (with good fundamental underlying attributes) which provide opportunity to reposition and add value.

The Fund will focus on acquiring industrial assets in metropolitan Perth only and may include a mix of single and multi-let assets.

*Target 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 Income distributions may be withdrawn completely.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 is targeting a total size of up to $50 million, with each of the assets valued at no more than $20 million.

With the Fund focusing on a value-add strategy, through our industrial expertise and active management, each asset acquired must meet 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, rental growth and yield compression forecast.

If no further assets meet the Fund’s investment criteria within 9 months of the initial purchase, no further assets will be acquired.

Investment Highlights

The first asset secured 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. Further details of our value-add strategy is explained in the Information Memorandum.

  • Built in 2009, the property comprises a modern office/warehouse facility of 6,867sqm.
  • Good clearance height of 8.5m rising to 10.9m.
  • Full ESFR sprinkler system allowing high racking for distribution and logistics – last mile supply chain appeal.
  • Scope to add additional GLA and rearrange the current loading dock configuration if required.
  • 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.

Raising Information

EXPRESSIONS OF INTEREST

Now Open


TOTAL RAISE

$6,000,000


MINIMUM INVESTMENT

$100,000


TYPE

Wholesale Investment. Find out if you qualify.


FUNDS REQUIRED

8 May 2022

133 Beringarra Avenue, Malaga ,WA

133 Beringarra Avenue, Malaga 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.

Strategically Located

Malaga is strategically located approximately 13km North of the Perth CBD, 15km from the Perth Airport and 25km from the Fremantle Port. Malaga’s connection to the Perth Road network with immediacy to Reid Highway and the recently upgraded Tonkin Highway, has seen the sub-market become the increasingly dominant industrial submarket in the northern corridor.

Malaga is occupied by a variety of national and multinational industrial occupiers including Iron Mountain, Laing O’Rourke, NextDC, Fujitsu and Cleanaway.

Expression of Interest

Complete the form below and we’ll provide you with more information on this investment opportunity.

    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 with units principally allocated in the order that each Application is received. The Issuer will allot the units subject to availability following closure of the Offer and subsequent scaling (if any).
  • By providing your email address, you are consenting to receive marketing communications from Westbridge Funds Management in the future, on the understanding that you have read and agree to our Privacy Policy and that you can opt-out at any time.

  • This field is for validation purposes and should be left unchanged.