The Subiaco-based syndicator has acquired a large format retail centre in Wagga Wagga.
Westbridge Funda Management has purchased a Wagga Wagga large format retail centre for $45 million from Sydney-based Argus Property Partners.
The Subiaco-based syndicator purchased HomeCentre at 143 Hammond Avenue and 111 Kooringal Road in East Wagga Wagga.
The property sits on a 41,292 square metre site with 16,860sqm of gross lettable area and is fully-leased.
Its tenants include Spotlight, Anaconda, Supercheap Auto, Petstock, and Autobarn and the property sold on a 6.75 year weighted average lease expiry.
Westbridge launched an unlisted fund for the asset and is targeting a 13 per cent internal rate of return and a 7 per cent per annum distribution.
Westbridge head of capital transactions Simon Worth said the fund manager was drawn to the strong tenant demand and limited supply of large format retail properties.
“With lower occupancy costs per square metre compared to mainstream retail assets like enclosed shopping centres, the Large Format Retail model can be significantly more appealing to tenants, in turn supporting the income resilience of these assets for investors,” he said.
“As an asset class, we also believe Large Format Retail is more adaptable amid the rise of e-commerce, with its dual function as both a shopfront and distribution/pick-up centre allowing these assets to complement, rather than compete with, online retail.”
JLL brokered the deal, which is expected to settle in April.
The property sold on a 6.6 per cent yield.
