Centuria Industrial Sell in Boondal for 20% premium to Book Value

The Centuria Industrial REIT has achieved a 20% premium to book value on the sale of 136 Zillmere Rd, Boondall at a price of $39.6m.

The property is a 16,048sqm industrial facility located in the suburb of Boondall, within the Northern Brisbane Industrial Precinct, approximately 12 kilometres north of the Brisbane central business district (CBD).

The facility is fully leased to Bradnam’s Windows and Doors Pty Ltd with a weighted average lease expiry of 10.7 years.

The property was sold at a premium to the property’s book value of $32.5m at 30 June 2020 which was based on an independent valuation at a cap rate of 6.5%. The $39.6m purchase price reflects a yield of circa 5.3%.

Jesse Curtis, CIP Fund Manager, commented, “The sale of 136 Zillmere Rd demonstrates CIP’s active management capability in successfully securing a lease extension and realising value to redeploy the proceeds into further growth and value add opportunities.”

The proceeds from the sale will initially be used to repay debt. Settlement is expected to occur in March 2021.