Farm Weekly

Bumper season is perfect time to plan for the future

Adjoining industrial distribution facilities in Broadmeadows, Victoria are part of Westbridge Diversified Fund No. 4's plan to acquire a $100-150 million commercial property portfolio.

This is branded content for Westbridge Funds Management.

A bumper season for many farmers makes now the ideal time to invest for the future, and leading WA investment experts Westbridge Funds Management have developed an ideal solution for farmers looking to diversify their holdings.

It's been an outstanding 12 months for Australian farmers. The value of agricultural production is set to come in at a $78 billion for 2021/22 as primary producers reap the rewards of the highest prices in 30 years.

But experienced farmers know good times don't last forever.

Damian Collins, Chairman, Westbridge Funds Management explains, "Living on the land can mean riding the ups and downs of everything from the weather to the state of global markets.

"This volatility makes it important to look for investments that provide stable returns, pay regular income - and still offer the potential for capital growth.

"An investment that ticks these boxes can play a valuable role in diversifying, smoothing out the highs and lows of farm income, while building and protecting wealth - regardless of what's happening on the farm."

Mr Collins says these goals could be achieved with the latest Westbridge investment offering - the Westbridge Diversified Fund No. 4.

Backed by outstanding commercial properties

"The fund invests in outstanding commercial properties - high value assets priced beyond the reach of most individual investors, that attract blue chip companies as tenants" explains Mr Collins.

Launched in 2021, the Westbridge Diversified Fund No. 4 aims to acquire a $100-150 million portfolio of commercial properties diversified by state, asset class and tenants, with the overarching goal of delivering consistent income backed by the potential for capital growth.

The fund is on track to achieve this target having already acquired two adjoining industrial distribution facilities in Broadmeadows, Victoria. The quality of the site, buildings and location are such that the property has attracted household-name tenant Holman Industries - a key supplier of hose pipe and reticulation products to leading outlets such as Bunnings, Tradelink and Reece.

The recently acquired facility in Canning Vale, Western Australia.

The fund is currently in the process of acquiring a second asset - a recently refurbished office/warehouse logistics facility in Canning Vale, Western Australia, tenanted by Blackwoods, a wholly owned subsidiary of Wesfarmers, which will further diversify the fund's portfolio.

Seven per cent distributions paid monthly

While the Westbridge Diversified Fund No. 4 initially set a distributions target of 6.5 per cent, Mr Collins says this target has recently increased to 7.0 per cent.

"At Westbridge, we operate by the principle that our investors' success determines our own success," he said. "So it's been very rewarding to let investors know we have raised our distributions target to 7.0 per cent for the year ahead effective from 1 April 2022."

"The uptick in distributions reflects the quality of the fund's properties and tenants. "Rental cashflow is outperforming our forecasts, and we'll be looking to maintain - and potentially increase, this distribution as we add further properties."

Smoothing lumpy income

Westbridge Diversified Fund No. 4 pays distributions monthly, helping to supplement and smooth out what can often be 'lumpy' farm income.

For busy farmers there are additional benefits to investing in commercial property through a professionally managed fund.

"It's a hassle-free way for time-poor farmers to tap into the high end of the commercial property market with far less capital than it requires to buy a commercial property directly," said Mr Collins.

"It's not just about accessing quality properties and tenants. The skill and experience of the Westbridge team leaves us well-placed to continually look for opportunities to add value to each property, and enhance capital growth prospects for our investors.

"I encourage all farmers to take a look at the Westbridge Diversified Fund No. 4. It can help farming families plan ahead and reap the rewards of a very good year well into the future."

For more information and to register your interest in the Westbridge Diversified Fund No. 4 click here.

This is branded content for Westbridge Funds Management.