Westbridge grows Qld assets

Westbridge Funds Management has purchased a Queensland retail centre for $23 million from Charter Hall, adding to its portfolio of east coast assets.

The Subiaco-based fund manager bought Redbank Plains Retail Centre, 25 kilometres south-west of Brisbane, as the final asset in its Diversified Fund No 4.

The 588 Redbank Plains Road property sits on 1.53 hectares with 1,613 square metres of gross lettable area.

It was sold with a weighted average lease expiry of 6.27 years, with leases to chain outlets including Ampol, Krispy Kreme, Zarraffa’s Coffee and Carl’s Jr.

It brings Westbridge's assets under management in Queensland to $137 million. 

Charter Hall bought the asset for $24.5 million in 2021, via its long WALE real estate investment trust.

Westbridge Funds Management head of capital transactions Simon Worth said more than 89 per cent of the site’s income was secured to national and global retailers.

“With the asset’s leasing profile linked to a blend of CPI and fixed review structures, we saw an opportunity with this acquisition to build on the fund’s defensive income profile, which has been a key part of our strategy in safeguarding against the current high inflation environment,” he said.

“Moreover, the centre is located within the emerging Ipswich City Council, which is one of Australia’s fastest growing local government areas, aligning with our mandate to acquire assets in locations with long-term capital growth potential.”

Westbridge Funds Management chairman Damian Collins said his team had invested considerable time into identifying the right asset to complete its $125 million fund.

“The Westbridge Diversified Fund number four aims to deliver monthly income distributions, coupled with capital growth potential based on asset locations with strong fundamentals,” he said.

“With its strategic location and strong blue-chip income stream, the addition of the Redbank Plains Retail Centre has served to further emphasise these objectives, and in our view has been the ideal asset to close out the fund.”

CBRE’s Michael Hedger and Joe Tynan brokered the deal.

The acquisition follows Westbridge’s purchase of a $6 million Brisbane logistics facility late last year and a Queensland medical centre for between $6 million and $7 million in 2022.