This article is from the Australian Property Journal archive
WESTERN Australian property fund manager Westbridge Funds Management has added to its Total Return Fund, buying a warehouse facility in Brisbane’s southern suburbs occupied by Mirage Doors Australia for $10.2 million.
The 11,440 sqm property is located at 122-128 Magnesium Drive in the industrial precinct of Crestmead, and occupies a prominent corner site in a high-demand area, with access to the Logan and Gateway Motorway Interchange.
Westbridge Funds Management head of capital transactions, Simon Worth said the acquisition aligns with the fund’s strategy to target high-demand assets with additional value-add potential.
“The Crestmead facility offers capital growth opportunities as well as rental uplift potential through an open market rent review at the current lease expiry.”
“We were particularly attracted to this asset due to its strategic location, which is highly desirable to industrial occupiers.
“The facility’s versatile features, including an expansive hardstand area of approximately 4,500 sqm, are increasingly rare and highly sought after in today’s market.”
Worth estimates the acquisition price was around 20% below the replacement cost of a similar warehouse facility.
The property has site coverage of just 30% and is underpinned by significant land value of approximately 70%, which Worth said maximised potential for future redevelopment and capital uplift.
The off-market transaction acquisition was managed by Mark Gilbride and Dan Munnich from CG Property.
The four-year Total Return Fund is targeting an internal rate of return of 10% to 12%. Its value-add strategy includes a 21% value uplift for its seed asset in Collinswood, South Australia, and an 87% uplift in rent at the Sinnamon Park Retail Centre in Queensland.
Mid-year, Westbridge Funds Management spent $21 million on two blue-chip Western Australia medical assets to add to the Total Return Fund, including the Sundew Day Surgery for $13.7 million and Forrest Family Practice for $7.25 million.
Around the same time it sold a Canning Vale industrial property in Perth mid-year for $12.3 million, achieving a handy return for investors of the single-asset fund.
