The initial investors in the fund have already reaped benefits, achieving total returns of 16.76%, surpassing the 14% target during the first five-year term, which concluded earlier this year. This term included the development of industrial land and value-add strategies for six industrial assets located in Western Australia. Now fully developed, the fund boasts a high-yielding, fully-leased portfolio valued at $183.5 million, hosting tenants such as ARC Group, Elders, Mader Group, Bestbar, and Rubbergem.

Realside CEO Linda Rudd highlighted the significance of secure defensive income for investors, especially given the current economic climate. "The case for secure and stabilised income from a fully-developed and fully-leased portfolio is always compelling, but this is elevated at a time when there remains a high level of uncertainty in investment markets at present given the current geopolitical environment," she said. "High-quality, fully-leased, institutional grade property in markets with favourable long-term fundamentals is attractive."

The Ovest industrial portfolio is underpinned by strong fundamentals. All six institutional-grade assets are 100% leased and located in one of Australia’s most tightly-held and best-performing industrial markets, where tenant demand is robust, and new supply is constrained.

Since 2021, the fund has been meticulously assembled through a disciplined acquisition and development strategy, executed by the Realside and Realside Ovest joint venture. This partnership sees Realside acting as Fund Manager while Realside Ovest, led by Julie Drago, serves as Asset and Development Manager.

Julie Drago, CEO of Realside Ovest, emphasised the fund's strategic benefits. "The Fund provides investors secure and stabilised income with mitigated risk in the immediate term and, through active asset management and the capture of embedded rental reversion, predictable growth potential moving forward," Drago stated. She also noted the opportunity this recapitalisation presents for new investors: "While many initial investors have elected to maintain their investment in Ovest, this recapitalisation enables new wholesale investors to participate at an opportune time in the cycle."

The portfolio's 9-year weighted average lease expiry (WALE) by income ensures strong income visibility for investors. This long-term lease structure enhances the appeal of the fund, offering stability and predictable returns amidst market volatility.

Realside's strategic focus on industrial assets comes at a time when the sector is experiencing unprecedented demand. The rise in e-commerce and the need for logistics and warehousing solutions have driven the demand for industrial properties, making them a lucrative investment opportunity. The constrained supply in key markets further bolsters the value proposition of the Ovest Industrial Fund.

As Realside continues its fundraising efforts, the company is keen to attract investors who are looking for stable returns in a market characterised by uncertainty. The fully-leased nature of the portfolio, combined with the strategic location of the assets, positions the fund as an attractive option for those seeking to capitalise on the growth potential of the industrial sector.

With the June 30 deadline approaching, Realside is poised to meet its fundraising target, offering investors a chance to be part of a fund that not only promises robust returns but also provides a hedge against market volatility through its stable and secure income stream.