Westbridge’s Diversified Fund No.4 acquires modern manufacturing facility on long-term sale and leaseback

Westbridge Funds Management

Leading Western Australian property fund manager – Westbridge Funds Management, has expanded the holdings of its popular Westbridge Diversified Fund No.4 with the acquisition of a modern manufacturing facility in the prime industrial precinct of Wacol, situated 16 kilometres south-west of the Brisbane CBD.

The 1.6 hectare site located at 53 Coulson Street, Wacol has a gross lettable area of 7,254 square metres comprising multi-level office space and 6,315 square metres of modern, clear span warehousing, with an internal height reaching 9.8 metres.

The site boasts dual crossovers and 80 metres of frontage to Coulson Street, Wacol – one of Brisbane’s premier industrial areas.

The Wacol property was acquired by Westbridge Diversified Fund No.4 for $14.5 million, and is backed by a new 15-year triple net lease to EGR Group, a global designer and manufacturer of automotive, building and commercial products.

The purchase of the Wacol property follows the pending acquisition by Westbridge Diversified Fund No.4 of Lot 3, Brabham Common, Perth – a modern Convenience Retail Centre located in Perth’s northwest growth corridor. The property is anchored by a number of blue-chip and multinational tenants including 7-Eleven, Subway, EG Fuel/Ampol and Oporto.

Mr Simon Worth, Head of Capital Transactions, Westbridge Funds Management, said, “We are delighted to add 53 Coulson Street, Wacol to the portfolio of Westbridge Diversified Fund No.4. The new 15-year triple net lease will deliver regular income to unitholders in keeping with the Fund’s mandate, and the location in one of Brisbane’s premier industrial areas brings additional diversity to the Fund’s existing commercial portfolio.

“Our analysis confirms the acquisition price is well below replacement value which, combined with constrained supply, allows scope for future capital growth. Together with the upcoming settlement of Brabham Common, the Wacol property will build on the Fund’s exposure to resilient sectors of industrial and non-discretionary/service-based retailers.”

The Westbridge Diversified Fund No.4 aims to provide investors with regular income returns while spreading risk through strong lease covenants and a diversified asset mix. The Fund is targeting a portfolio of $150 million in assets, and has a property portfolio that includes:

  • An industrial facility in Broadmeadows, Victoria, leased to Holman Industries.
  • A prominent retail centre anchored by Dan Murphy’s in Southern River, WA.
  • An industrial warehouse in Canning Vale, WA, leased to Blackwoods, a wholly-owned subsidiary of Wesfarmers.
  • A high-profile industrial facility in South Guildford, WA, leased to Swick Mining Services, a wholly-owned subsidiary of DDH1 Limited (ASX:DDH).

Mr Damian Collins, Chairman of Westbridge Funds Management, said, “Our diversified commercial property funds have historically held strong appeal with income-focused investors due to their ability to provide a regular income stream in the form of monthly distributions.

“By building a multi-asset portfolio of commercial properties spread across different locations, sectors and tenancies, we are able to generate multiple income streams within the one investment, which helps to support consistency of income returns for our investors,” concluded Mr Collins.

The Westbridge Diversified Fund No.4 is targeting distributions for the current financial year of 6.5%, and is open to investors with a minimum initial investment of $50,000.


/Public Release.