Realside Property has launched an industrial fund under new investment management platform Ovest Industrial, headed by industry leader Julie Drago.
Ovest Industrial is a collaboration between Realside Property and a private Perth family business, led by Julie Drago, which own and operate Hero Properties, a prominent landlord and developer in Western Australia’s industrial market.
Ms Drago has been appointed chief executive of Ovest Industrial and will also remain chief executive of Hero Properties.
The Ovest Industrial Fund No1 is targeting a total portfolio value of $100 million once fully developed and has already secured options to purchase $45 million worth of land.
The fund already has four assets under its portfolio, including a workshop/office tenanted by Steelforce on Nardine Close in Forrestfield, two development sites on the same street and a 24,000 square metre warehouse located on 12 hectares of land in Rockingham.
“We’ve both been in the Perth market for 25 plus years, so we plan to use our relationships and our networks,” Mr Vonic told Business News.
“Julie, Linda and Stephen bring a proven track record in industrial development and asset management coupled with Realside’s asset and investment management expertise.
“Bringing those skills together to form Ovest creates a truly unique vertically integrated industrial development manager, asset manager and investment manager.
“The Ovest Fund is an innovative build-to-own model providing sophisticated investors with long-term cash flow and the ability to participate in development upside.”
Mr Vonic said the Ovest Industrial Fund No.1 planned to initially target tenants in the 3,000 to 10,000 square metre range in Western Australia.
Ms Drago said Hero Properties would continue to act as a landlord of its existing industrial assets, but that moving forward development opportunities would be encompassed within Ovest.
“This opportunity was a way for us (private family entity) to continue to grow… and one of the reasons we decided to partner with Realside, knowing they had that national portfolio,” Ms Drago told Business News.
“We are an experienced development team with established roots in the manufacturing and industrial sectors. We develop properties with long-term ownership in mind and we build long lasting relationships with tenants based on service delivery and an acute understanding of their specific requirements.
“At the moment the intention (of Ovest) is to just focus on WA, our mid to long-term forecast is to eventually move to the east coast.
“But at the moment, things are booming in Perth.”
Mr Vonic said the groups had been in discussions for the new venture since late last year.
“The timing of this launch capitalises on the strong economic conditions in the WA market, driven by the resource sector and significant global infrastructure spend post COVID, fuelling growth of business and tenant demand for industrial property,” he said.