Property fund manager Westbridge Funds Management has bought a modern warehouse in Brisbane for $14.5 million, as it diversifies the Westbridge Diversified Fund No.4 portfolio.

The modern manufacturing facility is located at 53 Coulson Street in the prime industrial precinct of Wacol, situated 16 kilometres south-west of the Brisbane CBD.

The 1.6-hectare site has a gross lettable area of 7,254 square metres comprising multi-level office space and 6,315 square metres of modern, clear span warehousing, with an internal height reaching 9.8 metres.

The site boasts dual crossovers and 80 metres of frontage to Coulson Street, Wacol – one of Brisbane’s premier industrial areas.

The Wacol property is backed by a new 15-year triple net lease to EGR Group, a global designer and manufacturer of automotive, building and commercial products.

The Wacol deal follows the pending acquisition of a modern convenience retail centre located in Perth’s northwest growth corridor.

“The new 15-year triple net 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,” said Simon Worth, Head of Capital Transactions, Westbridge Funds Management.

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

“Together with the upcoming settlement of Brabham Common, the Wacol property will build on the Fund’s exposure to resilient sectors of industrial and non-discretionary/service-based retailers.”

The fund is targeting a portfolio of $150 million in assets, and has a property portfolio including an industrial facility in Melbourne and a prominent retail centre anchored by Dan Murphy’s in Perth.

It also has an industrial warehouse leased to Blackwoods in Perth and a high-profile industrial facility leased to Swick Mining Services in Perth.

“By building a multi-asset portfolio of commercial properties spread across different locations, sectors and tenancies, we are able to generate multiple income streams within the one investment, which helps to support consistency of income returns for our investors,” said Damian Collins, Chairman of Westbridge Funds Management.