Sydney, Aug 5: WA fund manager Westbridge Funds Management has acquired a high-profile warehouse facility in the core industrial precinct of Kewdale, Western Australia.
The $12 million purchase of this fully leased industrial facility aims to generate significant income and growth for investors.
Located at 169 Kewdale Road, the 12,646 sqm site features a highly functional warehouse/workshop facility with newly refurbished office accommodation.
It is anchored by a new ten-year lease to Magna Tyres Australia, a subsidiary of global tyre distributor Magna Holdings B.V.
The lease includes fixed annual rent reviews of 4.0 per cent.
“Kewdale is one of Perth’s most sought-after and tightly-held industrial suburbs due to its strategic proximity to key transport infrastructure including Leach Highway, Tonkin Highway, Perth Airport, the Perth CBD, and the Kewdale Intermodal Freight Terminal. This area benefits from high demand from industrial occupiers and tenants which, combined with the strong income fundamentals of the asset itself, sets the property in strong stead to capture future income and value uplift,” said Simon Worth, Westbridge’s Head of Capital Transactions.
The asset targets average income distributions of 8.0 per cent per annum for the first five years, increasing to an average of 9.3 per cent between years six and ten.
“As well as providing sustained future income growth through fixed reviews, the lease is secured on a triple-net basis, which means the tenant is responsible for all outgoings including capital expenditure. This helps to protect our investors from fluctuations in operating expenses, adding further strength to what is already an attractive income opportunity,” added Worth.
The sale was brokered by JLL’s Head of Logistics & Industrial (WA), Matt Brunsdon.
“There was strong demand for this prime Kewdale asset, with the investment opportunity generating over 80 enquiries and multiple offers received. The large number of enquiries is attributed to a shortfall of core industrial assets that have come to market this year,” said Brunsdon.
“Perth’s industrial sector has seen strong investment activity in the past 12 months with a 7 per cent increase in sales compared to the 12 months prior, from $317.1 million in Q2 2022 – 2023 to $338.2 million in Q2 2023 – 2024,” Brunsdon added.
“This acquisition represents a great opportunity for our investors to gain exposure to an asset that ticks all the boxes as a commercial investment – great location, solid long-term growth prospects, and strong income fundamentals to support an attractive monthly cashflow for our investors,” said Westbridge Funds Management Chairman Damian Collins.
Following the settlement of this property, Westbridge Funds Management’s total assets under management will exceed $960 million.
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