Perth asset manager buys Melbourne warehouses
Westbridge Funds Management has swooped on an industrial investment in Melbourne’s north Thomastown.
The 7600 square metre asset, 62 Northgate Drive, is costing $13.25 million – a six per cent yield.
With 4970 sqm in two modern improvements, configured as a logistics facility for National Product Fulfilment, or NPFulfilment, it is rented for an average $160 per sqm, per annum.
The weighted average lease expiry is 3.6 years.
The seller paid $7.8m in mid-2020, in the heart of the national COVID lockdown.
It was represented by Colliers’ Daniel Telling and Billy Kanakis.
Westbridge reweighs portfolio
It has been a busy period for Westbridge, which we reported in January sold a Ravenhall industrial investment on 1.4ha for a major premium on its outlay in 2017.
Three months ago it offloaded a Lynbrook industrial investment.
KM Property Funds was that buyer.
The deal also reflected a windfall on what Westbridge paid, in this case, in 2015.
It has bought properties too, including in February, a Brisbane warehouse to seed a $30m opportunity fund.
Total Return Fund portfolio built
The Thomastown asset, 16 kilometres from town, is the final acquisition for the Total Return Fund which is targeting a 10-12pc internal rate of return.
The portfolio is worth $78m.
NPFulfilment has a direct logistics contract with Woolworths.
“With excellent access to major transport infrastructure, low site coverage, and a nationally recognised tenant, the asset adds significant strength to our logistics exposure and aligns with sustained occupier demand in core infill markets,” Westbridge head of Capital Transactions, Simon Worth, said.
“The strategic location offers excellent connectivity for logistics operations, with direct access to
Melbourne Airport and Port of Melbourne both just 15-20 kilometres away,” according to the executive.
The property has value add potential, lifting rental and capital uplift, the group’s head of Commercial, Alex Lambert, added.
“With this final acquisition, we’ve assembled a strategic portfolio targeting high-demand sectors
including medical, industrial, last-mile logistics, and neighbourhood retail,” he said.
Subscribe to our newsletter at the bottom of this page.
