Saturday, August 13, 2022
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Westbridge purchases Perth warehouse for $16.21 million

Westbridge

After attracting more than 10 bidders during the first round of offers, Westbridge Funds Management acquired the upgraded warehouse logistics facility from Perron Group

The Western Australian industrial property market is showing signs of vitality after investment manager Westbridge Funds Management purchased a warehouse in Canning Vale, Perth for $16.21 million.

Located roughly 19 kilometres south of the Perth CBD, the property at 41-43 Baile Road sits on a 23,176 sqm site, with 9,606 sqm of warehouse space and a 351 sqm office facility.

The site is leased to Blackwoods, one of Australia’s leading suppliers of tools, safety gear, workwear and other industrial supplies, and a wholly-owned subsidiary of Wesfarmers.

The recent settlement of the Canning Vale property is a welcome addition to our Westbridge Diversified Fund No. 4 property portfolio, Westbridge Funds Management chairman Damian Collins said.

It fits within the Fund’s goal of building a $100 to $150 million portfolio featuring up to 12 high-quality commercial properties diversified by state, asset class and number of tenants, Collins said.

The strong covenant provided by the Wesfarmers subsidiary, coupled with the high underlying land value, makes this an excellent long-term investment, Collins said.

After attracting more than 10 bidders during the first round of offers, Perth-based Westbridge Funds Management acquired the upgraded warehouse logistics facility from the privately-owned Perron Group.

The Perron Group owns a diverse property investment portfolio comprising of retail shopping centres, commercial office buildings and unlisted airports, and is also the Toyota automotive and parts distributor for WA.

The Perron Group has recently appointed current CFO Adam Irving as the next CEO, who is set to take over on 1 July following the retirement of 40-year veteran and present managing director and CEO Ross Robertson.

The Group announced a statutory profit of $337.7 million last November, following a loss of $304.1 million in FY2020.

On the other side of the country, the group recently began construction on a $1.5 billion 15-year building development on the Gold Coast last year – known as the SkyRidge project. The 342-hectare site is set to become a new suburb in the city’s west once complete.

The group received approval for a $1 billion development in Perth suburb of Cockburn in October 2021, partly financed by the sale of its 50 per cent share of the Runaway Bay Shopping Centre on the Gold Coast to Greenpool Capital in partnership with Qualitas, which also snapped up Vicinity Centres’ stake for $132 million in November.

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