Bunker Bay, June 10: Westbridge Funds Management has enhanced its Total Return Fund by acquiring two prime medical assets in Western Australia, totalling $21 million.
The acquisitions, completed on June 7, include Sundew Day Surgery in Joondalup for $13.7 million and Forrest Family Practice in South Bunbury for $7.25 million.
Sundew Day Surgery, a state-of-the-art facility in Joondalup Town Centre, is leased by Nexus Hospitals and boasts a WALE of 5.70 years with options for two 5-year extensions.
This asset is poised for rental growth due to Joondalup’s limited land for medical facilities and significant population increase.
Forrest Family Practice, fully leased to ForHealth, has a robust WALE of 7.13 years and provides a stable income stream with CPI rent reviews.
Potential refurbishments could further enhance its rental and capital value.
Simon Worth, Westbridge’s Head of Capital Transactions, commented, “The Sundew Day Surgery and Forrest Family Practice add blue-chip income streams to the Total Return Fund to support consistency of distributions while also capitalizing on what we believe is a softening in the cycle for Australia’s sought-after medical sector.”
Damian Collins, Chairman of Westbridge Funds Management, added, “These two assets will play an important role in supporting the Fund’s robust income stream while we work through the value-add strategies across the Fund’s portfolio, supporting our ultimate aim of delivering the ‘Total Return’ that’s central to the Fund’s mandate.”
With these acquisitions, the Total Return Fund now manages five assets worth $52 million, moving towards its $100 million target.
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