Local investors have swooped on the industrial building in a $13.65 million deal.
Subiaco fund manager Westbridge Funds Management has sold a Malaga industrial building for $13.65 million to local investors.
Andrew and Rachel Jackson, of Dalwallinu, have purchased 133 Beringarra Avenue from Westbridge, via Jackson City Pty Ltd.
The fund manager purchased the property in 2022, for $10 million, from Hobson Holdings Pty Ltd.
Hobson Engineering occupies the building, with its lease due to expire within 12 months.
Cushman & Wakefield director logistics and industrial WA Ross Palframan, who brokered the deal, said the purchasers intended to move into the site.
“The shortage of quality vacant industrial facilities in the Western Australian market speaks to the nature of this transaction, with the purchaser taking a strategic view on the asset’s existing lease tail and de-risking their future accommodation requirements by securing the asset now for occupation in twelve months’ time,” he said.
Westbridge Funds Management head of commercial funds Alex Lambert said the strong sale result justified Westbridge’s decision to establish its industrial total return fund.
“Our market analysis indicated that there was a strategic opportunity in this market, with low supply and strong demand creating favourable conditions for growth,” he said.
“When we acquired this asset, we were attracted by its versatile size and specifications, prime industrial location, and the potential for capital appreciation.
“Combined with the strong demand we're currently seeing from owner-occupiers in the industrial sector off the back of rising rents and challenges in the construction market, these factors have culminated in this outstanding outcome for our investors.”
The divestment follows Westbridge’s sale of 3 to 5 Marchesi Street for $5.4 million to Western Rollformers Pty Ltd in May.
The fund manager intends to divest the final asset in the fund, at 1a Forge Street in Welshpool, which it purchased for $9.6 million in September 2022.
Westbridge is projecting an internal rate of return of 13.7 per cent per annum, above its initial projections of about 12 per cent per annum, for its industrial fund.
