This article is from the Australian Property Journal archive
WESTBRIDGE Funds Management has bought a business estate in Perth’s industrial hub of Welshpool for $37.465 million, which will be held in a newly-launched fund.
The acquisition of Orrong Business Estate takes Westbridge’s assets under management to over $640 million.
Orrong Business Estate spans 55,723 sqm of land with 9,930 sqm of gross lettable area. It is fully leased across 11 tenancies including Kennards Hire, United Petroleum and Bridgestone, with a weighted average lease expiry of 4.6 years.
Located at 404 Orrong Road, the Estate is 11 minutes from Perth airport and eight minutes from the Kewdale Intermodal Freight Terminal.
“Industrial property in Perth was performing strongly before COVID-19, and the pandemic has only served to bolster what is rapidly shaping up as an undersupplied market,” Westbridge chairman Damian Collins said.
“Westbridge Funds Management has forged a reputation for maximising the value of commercial property assets, and the team behind the Welshpool Property Fund believe the nature of the site provides exciting opportunities to add value through repositioning and further development.”
In the near-term this will included the development of a brand new 3,000 sqm warehouse, he said, and additional asset enhancement opportunities include increasing lettable area and income, coupled with the potential for further development in the future.
It will be held in the Welshpool Property Fund, which has settled on the purchase and is targeting distributions of 7.5% in the first year and a target average distribution of 10% each year over the first three years.
“The newly launched Welshpool Property Fund offers a rare chance to invest in a significant strategic industrial estate within the highly sought-after Welshpool industrial area – one of Perth’s core industrial precincts,” Collins said.
“Wholesale investors have welcomed this opportunity to access such a prominent industrial asset with the fund well over-subscribed.”
Almost $16 billion was spent on industrial and logistics in 2021, marking the highest ever year for investment sales in the sector.
Westbridge launched the Westbridge Diversified Fund No. 4 in spring with the investment of two adjoining distribution facilities in Melbourne’s Broadmeadows leased to Holman Industries.
Westbridge closed 2021 with the $12.5 million acquisition of an apartment block in the Pilbara region, which it estimates to be $22.5 million below the asset’s $35 million replacement value.
