This article is from the Australian Property Journal archive
PROPERTY fund manager Westbridge Funds Management has sold a Canning Vale industrial for $12.3 million, achieving a 517% total return for investors.
Westbridge purchased the 50 Baile Road Canning Vale property in June 2005 for $4.8 million.
It was held by the single-asset Baile Road Syndicate and after factoring in capital uplift and income distributions, the syndicate will have delivered a 517% total return, or 14.6% Internal Rate of Return (IRR) per annum, to investors over its 20-year life.
Located 19km south of the Perth CBD, the property comprises a 15,289 sqm lot with a high-bay warehouse and office facilities.
Westbridge head of commercial funds Alex Lambert said the sale demonstrates the continued demand for well-located industrial assets.
“We secured a great outcome from a market rent review on the asset in November 2023, which saw the rents adjusted to market following consecutive periods of rental growth.
“Knight Frank’s industrial report highlighted year-on-year prime rental growth of 9.6% in Perth in Q2 2023, with secondary rental growth of 12%. Following this result and the attractive positioning it underpinned for the asset, we felt it was the right time for divestment to capitalise on returns for our investors,” he added.
Westbridge chair Damian Collins said the sale of 50 Baile Road follows Westbridge’s recent divestment of 3 & 5 Marchesi Street in Kewdale – one of the three assets in the Westbridge Industrial Total Return Fund. It was purchased by an owner-occupier buyer for $10.8 million, delivering a 33% capital growth over 16 months of ownership.
“These outstanding outcomes are testament to Westbridge’s deep knowledge of the WA industrial property market, and the team’s strong commercial acumen in bringing our fund management strategies to life.” Collins said.
The Canning Vale sale was brokered by Cushman & Wakefield’s head of industrial and logistics (WA) Nick Goodridge.
