The Southern River acquisition is the third asset for Westbridge’s successful Diversified Fund No.4, bringing a strategic retail offering to the Fund’s commercial property portfolio.
The Westbridge Diversified Fund No.4 managed by leading Western Australia property group – Westbridge Funds Management, has settled the purchase of 1-7 Holmes Street, Southern River WA.
The 10,744 square metre (sqm) Southern River site was purchased for $20.25 million having a gross lettable area of 3,038sqm spread across a diversified retail offering including a freestanding Dan Murphy’s store, adjoining Brooklands Tavern and a single level retail/commercial building consisting of ten individual tenancies.
The property is anchored by the Australian Leisure and Hospitality Group, a wholly owned subsidiary of the Endeavour Group (ASX:EDV) underpinning 62% of the net income. Additional separate retail buildings are tenanted to high-profile brands including Baskin-Robbins, Crust Pizza and LJ Hooker.
The Southern River asset is 100% leased with a weighted average lease to expiry (WALE) of 8.54 years and is directly adjacent to a freestanding Aldi and situated opposite a Woolworths.
Located approximately 17 kilometres south-east of the Perth CBD, the site offers a prominent corner landholding featuring 58 metres of frontage to Warton Road, with strategic access to major arterial links including the Roe Highway. The asset services a rapidly growing residential corridor with a population in excess of 120,000.
The acquisition of 1-7 Holmes Street, Southern River brings valuable diversity to the Westbridge Diversified Fund No.4. The fund’s additional holdings include a recently refurbished office/warehouse facility on a 23,177sqm site leased to Blackwoods in Canning Vale, WA, and a 8,275sqm logistics facility on a 14,381sqm site in Broadmeadows Victoria, which is leased to Holman Industries.
Mr Damian Collins, Chairman of Westbridge Funds Management, said, “The purchase of the Southern River site is a key strategic step for Westbridge Diversified Fund No.4, which is designed to provide regular income to investors, while targeting assets that have the potential for capital growth.
“The Diversified Fund No.4 is well-placed to achieve its mandate through three high quality assets spread across very different sectors and locations, giving investors the benefit of true diversity.”
The Westbridge Diversified Fund No.4 is currently distributing at 7% per annum. This is driven by a diversified income stream of rents from high quality, reputable ASX-listed and national tenants.
“We know from investor feedback that regular income flow is particularly appealing at a time when equity markets are experiencing high volatility, and cash savings continue to offer interest rates below the cost of living increases.”