Open-ended Industrial Fund Targeting Income & Capital Growth
Target 11% to 13% IRR*
(Internal Rate of Return) what’s IRR?
Growth and income fund with dividends paid monthly, plus potential capital appreciation. Targeting special distributions as assets are repositioned during the Fund’s term.
The Westbridge Industrial Opportunity Fund builds on the success of Westbridge’s previous funds, with a focus on the industrial sector.
The Fund targets the delivery of a ‘Total Return’ by combining monthly income with the potential for capital growth*. Its core strategy focuses on acquiring both income-generating and value-add assets, targeting opportunities to enhance value throughout the Fund’s term.
This new Fund is open-ended in structure, offering investors flexibility to enter throughout the fund term and exit at fixed intervals.
Register Interest
Disclaimer: *The target IRR includes all distributions paid as well as the net amount (after payment of estimated costs and expenses and estimated liabilities of the Fund) which would be paid to Unitholders if the Assets were sold. Special Distributions are subject to Fund strategies being achieved as outlined in the IM. Target returns are not promised nor guaranteed and are based upon a number of assumptions. Their achievement is subject to risks. The target return range is a target only, not a forecast and it might not be achieved. Please refer to the Information Memorandum for more information, noting the section on financial information and risks before deciding whether or not to invest. Past performance is not a reliable indicator of future performance.
Key Investment Information
The Fund has acquired its seed asset, a high-grade manufacturing facility in the prime industrial precinct of Pinkenba, Queensland and is now acquiring a second asset, a strategic landholding with significant exposure in Welshpool – WA’s primary industrial precinct. The property is tenanted by Coates, a wholly owned subsidiary of Seven Group Holdings Limited (ASX:SVW).
- Target IRR: 11-13%* Internal Rate of Return (IRR) what’s this?
- Monthly Distribution Yield: 5% – 6% p.a. plus potential for capital appreciation
- Potential for Special Distributions: The Fund will target the payment of special distribution as assets are repositioned, returning some of the capital gains to investors during the Fund’s term
- Investment Type: Open-ended fund with 5-yearly withdrawal options
- Fund Size: Capacity of up to $250 million.
- Unit Purchase: Investors can invest monthly based at prevailing unit price
- Minimum investment: $100,000, with $10,000 additional investment
- Open to: wholesale investors what’s this?
The Fund Strategy
Industrial assets with strong growth potential.
The Westbridge Industrial Opportunity Fund is focused on acquiring industrial assets across Australia, blending core income-generating properties with those that offer value-add potential. The Manager has invested over 50% of their commercial portfolio in Industrial property and has a detailed understanding of the asset class and drivers of value. Westbridge has a strong track record in commercial property funds – recent divestments have seen significant capital uplift, both over the short and long term, as the Manager has executed the investment strategy. More on Westbridge’s track record.
Key investment criteria includes:
- Core Locations: Industrial properties in established, high-demand areas with strong growth potential.
- Target Size: Properties valued between $10-$40 million, positioned in the mid-market between institutional funds and private buyers.
- Sector Strength: Assets that capitalise on growing demand in the logistics and manufacturing sectors.
- High-Quality Assets: Properties with strong fundamentals, appealing to a broad range of occupiers and offering stable income with growth potential.
- Value-Add Opportunities: Underutilised sites with potential for redevelopment or upgrades to increase value.
- Land Rich: Properties that are land rich and/or below replacement cost.
- Lease Expiries: Assets approaching short-term leases, allowing the opportunity to unlock rental growth when reset to current market rates.
- Logistics & Manufacturing Facilities: High-specification warehouses, workshops, and manufacturing sites with specialised features such as high bays, cranes, dangerous goods storage, and bespoke power capacity.
- Cold Storage & Food Production: Facilities with high barriers to entry, ensuring long-term demand.
Key Information on New Asset
Highly Visible Industrial Facility in WA
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 acquisition offers the ability to acquire a 16,715 sqm land holding with only 14% site coverage and extensive hardstand. The existing Coates lease provides income for the Fund, while offering several options at lease expiry including the potential to increase the built area and add value. Should Coates exercise its 5-year option there is the ability to drive capital growth through resettling the rent to market. Welshpool continues to be WA’s pre-eminent industrial precinct due to its unmatched accessibility and convenience.
Address: 1A Forge Street, Welshpool, WA
Tenant: Coates – A Wholly owned subsidiary of Seven Group Holdings (ASX:SVW)
Land Area: 16,715sqm
Total gross lettable area: 2,397sqm
Asset Highlights: 1A Forge Street, Welshpool
- Highly Visible: The industrial facility is situated on an irreplaceable landholding of scale with extensive frontage and exposure to Leach Highway of some 95 meters. The Property benefits from exposure to over 50,000 passing vehicles each day along Leach Hwy.
- Flexible Asset: The functional office/warehouse improvements and extensive sealed bitumen hardstand are highly sought after and well-suited to a variety of industrial users.
- Strategic Location: Strategic land holding in Perth’s premier industrial locality with proximity to major arterial thoroughfares and transport infrastructure.
- Strong Tenant: The property is fully leased to Coates, a wholly owned subsidiary of the ASX listed Seven Group Holdings Limited (ASX:SVW) with a WALE of 4.8 years. The property is considered under-rented and offering capital growth potential at lease expiry.
- Future development: The low site coverage of just 14% and compelling locational characteristics offers further development or redevelopment potential.
The Property & Location
1A Forge Street is a prime industrial asset located in WA’s pre-eminent industrial precinct of Welshpool. The property is accessed via a crossover onto Forge Street with the majority of the property enjoying Leach Highway frontage that benefits from exposure to over 50,000 passing vehicles each day.
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.
Key Information on Fund’s seed asset
Prime Industrial Facility in Pinkenba, QLD
The Fund’s seed asset is a prime industrial facility located in the highly sought-after Australian TradeCoast precinct. Situated on a substantial 20,023sqm corner site with three street frontages, the property boasts significant underlying land value, representing approximately 50% of the total asset value. Acquired at an attractive initial yield exceeding 7%, the existing lease, expiring in January 2028, offers exceptional flexibility, providing the opportunity to secure a long-term commitment or reposition the property at lease expiry.
Address: 46-50 Unwin Street, Pinkenba, QLD
Tenant: Fully leased to HMG Hardchrome, part of global conglomerate Sime Darby Berhad
Land Area: 20,023sqm zoned for general industry
Total gross lettable area: 9,555m2
Asset Highlights: 46-50 Unwin Street, Pinkenba QLD
- Target Yield: The property will be purchased at an initial yield exceeding 7%.
- Landholding: The Manager estimates the site’s land value represents 50% of the total property value.
- High Relocation Barriers: Significant infrastructure investments, including power upgrades and an Environmental Authority Permit, make it difficult for the tenant to relocate.
- Lease Flexibility: The current lease expires in January 2028 with no further terms, allowing flexibility for long-term renewal or repositioning.
- Multi-Tenant Potential: The property is suitable for a multi-tenant arrangement and is being acquired below estimated replacement cost.
- Strategic Location: Pinkenba’s proximity to Brisbane Airport and the Port of Brisbane drives high demand from industrial users.
- Prime Access: Just 9 km from Brisbane CBD, with excellent access via the Gateway Motorway in the Trade Coast area.
- Strong Tenant: Leased to HMG Hardchrome, part of Sime Darby Berhad (KLSE:SIME), a global leader in heavy industry manufacturing with operations in 17 countries.
The Property & Location
46-50 Unwin Street, Pinkenba is a prime industrial asset located just 9 km from Brisbane’s CBD, within the highly sought-after Trade Coast precinct. The site offers excellent connectivity via the Gateway Motorway, with close proximity to Brisbane Airport and the Port of Brisbane, making it an ideal location for industrial users.
FAQs
If you have any further questions, please reach out to our key relationships team.
When can I invest?
The Fund is open for investment at any time, with units issued at the end of the month following application submission.
How are withdrawals managed?
Investors can request to redeem their units at five year intervals. Liquidity for these withdrawals will be sourced from raising new funds, the sale of one or more assets, or increasing the Funds gearing (within the target range).
How are units priced?
Units are issued monthly based on the prevailing price.
How is the Fund valued?
Property valuations are conducted annually or more frequently where there has been a material change, such as a leasing event.
Fund Resources
Announcements
Register your interest in the
Westbridge Industrial Opportunity Fund