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- Western Australia-based property funds manager, Westbridge Funds Management, has today launched a new diversified fund
- It launched the fund by acquiring two industrial distribution facilities in Broadmeadows, Victoria
- The 1.43-hectare land is leased for seven years with two five-year options, with an annual net rent of $750,000 at the outset
- The Westbridge Diversified Fund No. 4 has a distribution objective of 6.5 per cent for FY22
Western Australia-based property funds manager, Westbridge Funds Management, has today launched a new diversified fund with an investment in two adjoining industrial distribution facilities in Victoria.
The Westbridge Diversified Fund No.4 seeks to purchase a $100-150 million portfolio of commercial properties that are diverse in terms of state, asset class, and tenants, with the primary goal to generate steady income while pursuing assets with capital development potential.
The newly acquired properties are leased to Holman Industries, a major provider of hose pipe and reticulation goods to large retailers including Bunnings, Tradelink, and Reece.
The 1.43-hectare land is leased for seven years with two five-year options, with an annual net rent of $750,000 at the outset.
Westbridge head of commercial funds Alex Lambert said the seven-year lease provided a platform to launch the new fund.
“Holman is a great WA born company that fits with one of our goals for the fund, targeting quality tenants, including private, national and international lease covenants,” he said.
Diversified Fund No.3, Westbridge’s previous diversified fund, ended in August 2021 with a portfolio of $90 million covering eight assets across three states and various sectors.
“Prior Diversified Funds have been highly sought after by our investors due to their varied nature, which enables them to gain exposure to different growth areas and reducing risk in comparison to investing all their capital into a single asset,” Mr Lambert said.
Westbridge head of capital transactions Simon Worth said the site sat within a fast-growing and diverse community in Hume.
“The asset is located on a prominent site within the Broadmeadows industrial precinct, located approximately 18kms north of the Melbourne CBD and 10km southeast from Melbourne Airport,” he said.
“The asset benefits from convenient access to major arterial road networks including the Western Ring Road, the Hume Highway and the Hume Freeway, and is set to benefit from the future North East Link.”
The Westbridge Diversified Fund No. 4 has a distribution objective of 6.5 per cent for FY22, with the intention of sourcing a portfolio of assets to help increase the target distribution to seven per cent in FY23.
The required minimum investment is $50,000.
