The transaction brings the Subiaco-based syndicator’s funds under management to $960 million.
Westbridge Funds Management has bought an industrial property in Kewdale for $12 million from global tyre manufacturer Magna Tyres.
The 169 Kewdale Road property is occupied by Magna Tyres, which signed a 10-year lease to cement its tenure at the facility.
The 12,646 square metre site has a gross lettable area of 3,984sqm, and comprises a workshop facility and newly refurbished office accommodation.
The transaction brings Westbridge’s funds under management to $960 million.
Westbridge head of capital transactions Simon Worth said the company was drawn to the strategic location of the asset, which is close to freight routes.
“This area benefits from high demand from industrial occupiers and tenants which, combined with the strong income fundamentals of the asset itself, sets the property in strong stead to capture future income and value uplift,” he said.
Magna Tyres Australia is a wholly-owned subsidiary of global tyre distributor and manufacturer, Magna Holdings B.V, which is headquartered in the Netherlands.
The tenancy is subject to fixed annual rent reviews of 4.0 per cent.
“As well as providing sustained future income growth through fixed reviews, the lease is secured on a triple-net basis, which means the tenant is responsible for all outgoings including capital expenditure,” Mr Worth said.
“This helps to protect our investors from fluctuations in operating expenses, adding further strength to what is already an attractive income opportunity.”
JLL WA head of logistics and industrial Matt Brunsdon brokered the sale.
“There was strong demand for this prime Kewdale asset, with the investment opportunity generating over 80 enquiries and multiple offers received,” he said.
“The large number of enquiries is attributed to a short fall of core industrial assets that have come to market this year.”
Mr Brunsdon added that industrial transactions in Perth had grown by 7 per cent in the past 12 months, with $338.2 million in sales between the second quarter of 2023 to Q2 2024.
Magna Tyres bought the property for $7 million from Lexus Holdings in March 2022.
The asset is targeting a five-year average distribution of 8.0 per cent per annum paid monthly, increasing to an average of 9.3 per cent between years six and 10.
