Institutional-grade industrial investment with defensive income stream, blue-chip tenant and future infill redevelopment potential.
distributions*
Target annual distribution paid monthly
IRR*
Target internal rate of return
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.
Westbridge Funds Management Chairman Damian Collins and Head of Key Relationships Brad Dunn chat through the opportunity in this video.
Why we like it:
- Long-term lease to ASX 100-listed tenant
- Underlying land value estimated at 85% of purchase price
- Target income distributions of 7%* paid monthly
- Targeting an IRR of 12%* p.a. (net of fees)* what’s this?
- Westbridge intends to hedge circa 50% of the total interest cost for three years to reduce interest rate volatility
Opportunity Overview
In uncertain times, well considered and planned investments are even more important. The Westbridge Moorabbin Property Fund was built for investing with confidence and focused on outcomes.
The Fund offers investors access to income derived from a long-term lease to a major ASX 100-listed tenant, Amcor (ASX: AMC), and is underpinned by the well located 32,855 sqm of metropolitan industrial land, with potential for future development.
The Fund is a single asset wholesale opportunity with a 7 year term^. Amcor has maintained operations at the site for 40 years, with significant embedded infrastructure and links to their operations network. The tenant also recently invested millions into machinery for the facility, supporting their operational reliance on the site.
Located within one of Melbourne’s most established infill industrial precincts, the property presents a compelling opportunity to secure stable income backed up by strong underlying land value, estimated at 85% of the acquisition price.
The Fund strategy is designed to capture both reliable income distributions and medium-term capital growth potential through redevelopment or divestment opportunities.
^ An initial 7-year term subject to investor vote on a further 3-year extension.
Asset Overview
The 7–31 Keys Road site comprises a substantial, rectangular, corner allotment with 200 metres of frontage to Keys Road and 160 metres to Friars Road. The facility offers 19,360 sqm of functional warehouse and manufacturing accommodation with full sprinkler coverage, efficient truck circulation and multiple access points.
Originally developed in the late 1960s and progressively upgraded through 2008–2014, the property offers high functionality for advanced manufacturing operations, fully sprinklered facilities, and integral infrastructure supporting the major tenant Amcor’s national production network.
- 30,000+ sqm rectangular site: Close to transport infrastructure with extensive frontage to Keys Road and Friars Road
- Rare offering: One of the only long-term redevelopment infill opportunities over 30,000 sqm in the prime industrial precinct of Moorabbin, only 19km from Melbourne CBD
- Income producing land bank: Underlying land value estimated at 85% of the acquisition price
- 7.33 year WALE: Weighted average lease expiry by income
- Fixed rent reviews: Contracted 3.5% annual rental increases
- Flexible exit strategies: Opportunity to explore lease renewal given embedded nature of the tenant or unlock the redevelopment potential of the asset
- Purchased at discount to replacement cost: Acquired at a passing yield of 6.54%, reflecting an approximate 80bps spread to the long-term Melbourne industrial average of 5.74%
Major Tenant
Amcor (ASX: AMC) is a global packaging leader operating across more than 40 countries, providing essential packaging solutions for food, beverage, pharmaceutical, medical, and personal-care industries. The ASX 100-listed company has a market capitalisation of approximately A$26 billion and long-term relationships with customers worldwide.
Amcor’s enduring 40-year occupation at the property reflects the critical and embedded nature of the site within their Australian operations.
Fund Strategy
- Strong Income and Discount to Replacement Cost
The property offers long-term income backed by a global manufacturing tenant and attractive yield metrics relative to historic and current market benchmarks. The acquisition represents a compelling discount to replacement cost and provides immediate income generation through to the lease expiry. - Sidelined Institutional Capital
Recent market headwinds and regulatory taxes on foreign investors have softened competition for Melbourne industrial assets. This creates an advantageous acquisition window for well-capitalised domestic buyers like Westbridge to secure prime assets below intrinsic value. - Flexible Divestment Pathways
At the end of the lease term, Westbridge will have optionality to either:
– Pursue a lease renewal to maintain strong income returns; or
– Leverage the site’s significant underlying land value and exposure for redevelopment or divestment to a broad pool of development buyers.
Either pathway underpins the fund’s dual focus on income generation and capital growth.
Property Location
It is a substantial 32,855 sqm industrial landholding within a well-established inner southeast industrial precinct of Moorabbin bordering Melbourne’s affluent bayside region. The property benefits from a surrounding residential catchment of over 1.8 million people within a 30-minute drive and access to skilled labour.
Only 19 km from Melbourne CBD, it has strong connectivity to primary arterial roads including Nepean Highway, Warrigal Road, Dingley Bypass, and the Monash Freeway, and established corporate neighbours such as Pact Group and Coca-Cola.
Register your interest in the
Westbridge Moorabbin Property Fund
To register your interest in the Fund or to learn more, please complete the form below and you will receive a copy of the information memorandum.
Wholesale Investment Opportunity
Single Asset Fund
Equity Raise: $24m
Minimum Investment: $100,000
Eligibility: Wholesale Investors
Do I qualify as a Wholesale Investor?
To invest into this fund you need to be classed as a Wholesale Investor.
To qualify as a Wholesale Investor you will need to meet one of the following criteria:
1) Holding net assets of at least $2.5 million
2) Having a high gross income of at least $250,000 for each of the last two financial years.
This can include income from a business if you’re a small business owner.
3) Investing $500,000 or more into a specific fund or syndicate