Leading Western Australian property fund manager Westbridge Funds Management has divested a key industrial asset from its MPS Diversified Property Trust for $30 million. 

The 10,000 sqm warehouse facility, located at 22 Salta Drive, Altona in Victoria, was acquired in  October 2017 for $11.5 million as part of Westbridge's strategy to target the State’s burgeoning  industrial sector. 

The sale price represents a 160% increase over a seven-year hold period.  

According to recent research by Colliers International, land values for prime industrial sites between one and five hectares in Melbourne have surged by an impressive 302% since 2017, rising from $190  to $763 per square metre. 

Prime rents recorded robust growth over the same period, increasing 96% from $74 per sqm to  $145/sqm. 

Westbridge Funds Management Head of Commercial Funds Alex Lambert said: “This exceptional result strongly supports our decision to anchor the MPS Diversified Property Trust's portfolio around the Victorian industrial sector. 

“Our market research indicated that this sector was approaching a cyclical upswing, characterised by  undervalued land and strong demand fundamentals, given Victoria's established position as the  industrial hub of Australia. 

“When we acquired this asset, we were attracted by its strong fundamentals that we believed would stand the test of time and drive long-term value appreciation. 

“These included its versatile size and specifications, prime industrial location with proximity to key transport routes including the West Gate Freeway, Princes Highway, and Port Melbourne, as well as  a tenant who was heavily invested in the property. 

“These factors, combined with the favourable market conditions we anticipated, have culminated in  this outstanding outcome for our investors.” 

The MPS Diversified Property Trust, seeded in 2015, was established to provide investors with  regular passive income through a diversified asset base while targeting sectors and locations with  long-term growth potential.  

Westbridge Funds Management Chairman Damian Collins said: “This sale represents an excellent  result for our investors and is a testament to our team's ability to identify, acquire, and manage assets  that deliver superior returns. 

“When combined with the 110% gross return already delivered in distributions, this sale will take the  total return to date for the MPS Diversified Property Trust to 184%.

“This achievement follows our earlier success with the sale of the Ellenbrook Medical Centre in WA for $12 million in June 2021, which marked a 48% uplift on its initial purchase price.” 

Mr Collins said Westbridge would now shift its focus to finalising the strategies for the four remaining  assets in the Fund, comprising two additional industrial properties in Victoria, a warehouse/office  facility in Western Australia, and a convenience retail centre in Queensland. 

"Subject to the sales outcomes of these remaining assets, we believe that the Fund is well-positioned  to deliver an indicative internal rate of return of over 16.5% per annum,” Mr Collins said. 

“This projection underscores our ongoing commitment to maximising returns for our investors through strategic asset selection, proactive management, and well-timed divestments.” 

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