Westbridge seeds opportunity fund with $30m factory
EXCLUSIVE
Westbridge Funds Management will seed an industrial focused opportunity trust with a major manufacturing plant in Brisbane’s TradeCoast precinct.
The two hectare holding, 46-50 Unwin Street, Pinkenba, is costing the group $30.51 million – a 7.7 per cent net passing yield.
It will be held by the open-ended Westbridge Industrial Opportunity Fund, which is expected to control up to c$250m of product.
Value-adding, repositioning, redeveloping and reletting are amongst the fund’s mandates.
Calling for investors, the manager is promoting monthly distribution yields of 5-6pc ex-capital appreciation.
The targeted internal rate of return is 11-13pc.
Unitholders will have a five year withdrawal option.
CG Property’s Dan Munnich and Michael Callow were the agents.
Medium term value-add play: Westbridge
With 9555 square metres across seven buildings, 46-50 Unwin St was built for Malaysia listed Sime Darby Industrial Services division HMC Hardchrome, which still occupies, for 3.4 more years (story continues below).
“The Pinkenba facility offers a highly attractive location in one of Australia’s most sought-after industrial precincts with close proximity to the Brisbane CBD, Brisbane Airport and Port of Brisbane,” Westbridge head of Capital Transactions, Simon Worth, said.
“The asset is land-rich…offering three street frontages with the underlying land underpinning a significant portion of the total asset value,” he added.
“Facilities of this kind are difficult and costly to replicate and hence experience strong pent-up demand from both tenants and occupiers,” according to the executive.
There is the potential to value-add through repositioning in the medium-term, he said.
“Westbridge analysis indicates the industrial market will continue to benefit from multi-faceted demand as growth in online retailing and an increased focus on local supply and manufacturing chains drive demand for warehouse space,” he added.
According to company chair Damian Collins, “the Westbridge Industrial Opportunity Fund breaks new ground…as its first open-ended fund allowing investors the flexibility to enter throughout the fund term and exit at fixed intervals”.
Pinkenba is about 12 kilometres east of Brisbane’s CBD.
Westbridge is Perth based.
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