This article is from the Australian Property Journal archive
A decision in 2017 by Westbridge Funds Management to focus on Melbourne’s growing appeal as an industrial hub has paid off, with the Western Australian property fund manager divested a warehouse asset in Ravenhall for $18 million.
Held in the MPS Diversified Property Trust, the comprises a 6,888 sqm facility located at 2-14 Independent Way which had been acquired in 2017 for $8.86 million.
“The Westbridge team is delighted with the sale outcome, which reinforces our decision to focus the MPS Diversified Property Trust’s holdings around Victoria’s industrial sector,” said Westbridge Funds Management head of commercial funds Alex Lambert.
“The acquisition of this particular asset was based on our research findings, which indicated Victoria’s industrial property market was approaching a cyclical upswing driven by undervalued land and strong demand fundamentals.
“Along with favourable market conditions, Westbridge was attracted to this specific asset based on its solid fundamentals including a modern fit-out, undervalued land, central location 20 kilometres west of Melbourne’s CBD, and potential for warehouse extension.”
The MPS Diversified Property Trust was established in 2015 aiming to provide passive income from a diversified asset base while targeting sectors and locations with long-term growth potential.
In a similar sequence of events, in August Westbridge Funds Management sold a 10,056 sqm warehouse facility at 22 Salta Drive in Melbourne’s Altona out of the MPS Diversified Property Trust for $30 million, well above the late 2017 purchase price of $11.5 million.
The fund has previously divested two other assets – a multi-tenanted medical centre in Ellenbrook and an office and warehouse facility in Henderson, both in Perth.
Westbridge Funds Management chairman Damian Collins said the sale of the Ravenhall asset marks the fourth divestment for the MPS Diversified Property Trust as it progresses with the fund’s sell-down phase.
“We are exceptionally pleased with the outcome achieved on behalf of our investors.
“Together with the fund’s robust income performance, the value uplifts realised through these divestments have seen a net total return of 128% delivered to investors to date, with two assets still remaining in the fund.”
Subject to the sale outcomes of the remaining assets, the fund is on track to deliver projected net total return of 154%, marking an indicative internal rate of return of 17% per annum.