Perth (6th September 2023): Leading Western Australian property fund manager – Westbridge Funds Management, has expanded the holdings of its Westbridge Total Return Fund with the $6.17 million acquisition of a fully-leased refrigerated logistics facility in Lytton, Queensland.
The sale was brokered by Gary O’Shea, Managing Director of Brisbane-based real estate agency, Blue Commercial.
The 2,440 sqm site located at 160 Benjamin Place has a gross lettable area of 1,530 sqm, comprising a cold storage facility and modern dual level corporate office.
The facility is located within the prime Australian TradeCoast precinct of Lytton on the doorstep of the Port of Brisbane, and is fully leased to wholesale distributor Sunshine Seafoods, who have successfully operated out of the property for over 10 years.
Mr Simon Worth, Head of Capital Transactions, Westbridge Funds Management, said, “Lytton is one of Brisbane’s most sought-after industrial suburbs due to its convenient access to the Brisbane CBD, Port of Brisbane and major trade routes. At the same time, there’s currently a market-wide shortage of available refrigerated logistics facilities which has driven vacancy rates in this sub-market to historical lows.”
“With strong tenant demand and consecutive periods of rental growth, the property presents an opportunity to capture significant rental and value uplift in the medium term,” Mr Worth explained.
“In addition, the current lease benefits from uncapped CPI rent review mechanisms, which provides good potential to capitalise on strong forecast short-term inflation.”
The Lytton property is the second acquisition made by the Westbridge Total Return Fund following the purchase of the Hampstead Hotel and adjacent First Choice Liquor store in Collinswood, SA in March 2023.
The Hotel was sold by Coles Group and is leased to Queensland Venue Co., a joint venture between Coles Group and Australian Venue Co.
Blended growth and income strategy
The Westbridge Total Return Fund aims to acquire up to $100 million in commercial assets with value-add and income potential over a target four-year timeframe, with potential properties spanning across the industrial, retail, hospitality, medical, and office sectors.
Mr Damian Collins, Chairman of Westbridge Funds Management, said, “We are delighted with this latest investment for the Westbridge Total Return Fund, and believe it is another fantastic asset to support the Fund’s growth and income strategy.”
The Westbridge Total Return Fund has a mandate to target commercial properties across two key categories.
This includes value-add assets with potential to re-set value in the near-term through capital improvement or leasing, and “income-plus” assets with medium to longer-term rental income in place and opportunities to reposition over time.
Mr Collins explains, “This dual-focused approach seeks to meet investor demand for opportunities that aim to deliver sought-after capital growth while still enabling robust, ongoing income through strong underlying tenancies and income-based opportunities.”
Both of the assets purchased to date offer immediate income streams through the underlying tenancies, with potential for medium-term capital uplift through capital improvements, and/or re-leasing, in the case of the Lytton property.
Key Facts:
Westbridge’s Total Return Fund has settled on a fully-leased refrigerated logistics facility in the prime Australian TradeCoast locality of Lytton near the Port of Brisbane.
The property is fully leased to Sunshine Seafoods, a wholesale seafood distributor.
The asset marks the second acquisition for the Westbridge Total Return Fund following the purchase of the Hampstead Hotel and adjacent First Choice Liquor store in South Australia.
About us:
Westbridge Funds Management has been helping investors grow their wealth through managed property funds for more than 20 years. Applying a unique research-driven and investor-first approach, Westbridge provides access to a range of unique commercial and residential property investment opportunities that are focused on generating long-term outperformance.
Westbridge Funds Management manages over $850 million of commercial and residential property funds and 20+ residential development projects. The company specialises in property acquisition, commercial and residential funds management, commercial property management and multi-unit residential developments.
