Westbridge acquires Wacol site for leaseback to EGR

Property fund manager Westbridge Funds Management has acquired a site at Wacol, south-west of Brisbane’s CBD, described as a “modern manufacturing facility”.

The purchase is through the company’s Westbridge Diversified Fund No.4 for $14.5 million, it said in a statement on Wednesday. 

According to Westbridge, the 1.6 hectare site at 53 Coulson Street hosts a gross lettable area of 7,254 square metres, with “multi-level office space and 6,315 square metres of modern, clear span warehousing, with an internal height reaching 9.8 metres”, and 80 metres of frontage to Coulson Street.

The acquisition is backed by a new 15-year triple net lease to designer and manufacturer EGR Group.

EGR runs Automotive Accessories, Building Products and Display divisions, according to its website, with its corporate headquarters at Salisbury, Queensland and manufacturing sites in Brisbane and Ontario, USA.

Simon Worth, Head of Capital Transactions at Westbridge, said the new lease “will deliver regular income to unitholders in keeping with the Fund’s mandate, and the location in one of Brisbane’s premier industrial areas brings additional diversity to the Fund’s existing commercial portfolio.

“Our analysis confirms the acquisition price is well below replacement value which, combined with constrained supply, allows scope for future capital growth.

Westbridge added that its Fund No. 4 is targeting a portfolio of $150 million in assets, and its property portfolio includes:

• An industrial facility in Broadmeadows, Victoria, leased to Holman Industries;
• An industrial warehouse in Canning Vale, WA, leased to Blackwoods, a wholly-owned subsidiary of Wesfarmers; and
• A high-profile industrial facility in South Guildford, WA, leased to Swick Mining Services, a wholly-owned subsidiary of DDH1 Limited (ASX:DDH).

Picture: credit Westbridge Funds Management