- Asset acquired for Welshpool Industrial Fund
- The Orrong Road Business Estate is fully leased with 11 tenancies, WALE of 4.6 years
- Westbridge now has over $640M in assets under its management
A major industrial asset in Perth has been acquired by a newly launched property fund.
The purchase of Orrong Road Business Estate in Welshpool, a major Perth core industrial precinct, has been settled for $37.47 million.
Westbridge purchased the asset on behalf of its newly launched Welshpool Property Fund. The acquisition marks Westbridge exceeding $640 million in assets under management.
The news comes after just before Christmas Westbridge acquired a $15M Victorian asset for its Diversified Fund No.4.
The 55,723sqm industrial site is multi-tenanted and includes a 9,930sqm gross lettable area, and is currently leased across 11 tenants such as Kennards Hire, Untied Petroleum and Bridgestone. The WALE is 4.6 years.
“The newly launched Welshpool Property Fund offers a rare chance to invest in a significant strategic industrial estate within the highly sought-after Welshpool industrial area – one of Perth’s core industrial precincts,” said Mr Collins.
“Industrial property in Perth was performing strongly before COVID-19, and the pandemic has only served to bolster what is rapidly shaping up as an undersupplied market.”
Damian Collins, REIWA
Mr Collins added that Westbridge seeks to maximise the value of commercial property assets through repositioning and further development.
“Near-term this includes the development of a brand new 3,000 square metre warehouse.
“Additional asset enhancement opportunities include increasing lettable area and income, coupled with the potential for further development in the future.”
“Wholesale investors have welcomed this opportunity to access such a prominent industrial asset with the Fund well over-subscribed,” concluded Mr Collins.
The Welshpool Property Fund is offering targeted distributions of 7.5% during the first year, with a target average of 10% per annum over the first three years.
