Westbridge seeds fund with Broadmeadows warehouse

The 1.43 hectare Broadmeadows asset (outlined) has two street frontages.

Holman Industries has sold a major Broadmeadows warehouse with a leaseback.

The $15.36 million deal for 125 and 145 Northcorp Boulevard reflects a 4.9 per cent yield.

It is one of two properties the buyer, Westbridge Funds Management, will use to seed a trust – the Diversified Fund No 4 (DF4).

Coincidentally, both parties are Perth based.

Broadmeadows is 16 kilometres north of Melbourne.

New fund to hold up to $150m of product

On 1.43 hectares, the Northcorp Blvd asset contains 8725 square metres of area.

Holman offered it with a seven year lease agreeing to annual three per cent rent rises.

With options the group, which distributes gardening, lighting and plumping products, can stay until 2038 (story continues below).

Westbridge is also buying 41-43 Baile Road, Canning Vale, for the Diversified Fund No 4.

Westbridge has been seeking investors for the new trust since September – the month after it closed the Diversified Fund No 3 which holds eight assets across three states worth a total of $90m.

Westbridge recently purchased a Wacol warehouse from Centuria.

The Broadmeadows property will seed DF4 with a 2.23ha Canning Vale warehouse, 41-43 Baile Road, leased to Wesfarmers subsidiary Blackwoods.

The trust is expected to retain real estate worth a total of $100-$150m – it is targeting up to 12 commercial properties with steady income and capital development potential.

The manager will consider healthcare, office and retail investments.

It is promising a 6.5pc return for FY22 rising to seven pc the year after.

Savills’ Brad Ester Daniel De Sanctis and Nick Stevens represented Holman.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.