Westbridge has secured key tenant Sealanes for its Palmyra industrial asset bought for $5.34 million.
Westbridge bought 4 Absolon Street in Palmyra late last year for $5.34 million from National Foods Milk, following its purchase of neighbouring property 2 Absolon Street for $20.15 million from the Paino family.
The Paino family owned Sealanes until 2016, when they sold it to Melbourne’s Superior Food Services.
Formerly the Fremantle Milk Distributors depot, 4 Absolon Street will be leased to Sealanes as part of its expansion from the neighbouring property.
The 9,565 square metre lot will be redeveloped in two phases, including the construction of a new dry shed, warehousing and office space.
Sealanes’ existing Palmyra warehouse at 2 Absolon Street is one of the largest landholdings in the Palmyra industrial precinct, comprising 9,035sqm of cold storage space on 20,251sqm of land.
Westbridge head of capital transactions Simon Worth said the off-market purchase of 4 Absolon Street delivered significant benefits to the fund’s investors.
“The purchase allowed us to negotiate an extension and variation to the existing lease with Sealanes to give our investors the surety of a 10-year lease term plus an increment increase in rent,” he said.
“In addition, the agglomerated site offers significant opportunities for development and long-term capital growth.”
The assets have a combined area of close to three hectares and are expected to deliver investors a 40 per cent increase in equity within the first six months of ownership.
This announcement follows Westbridge’s purchase of a 55,723sqm Welshpool site for $37 million.