The Centuria Industrial REIT, has completed external valuations on its investment properties as at 31 December 2020, revealing a 6.3% gain in values.
Approximately 58% of the portfolio was valued independently with the key highlights including:
• External independent valuations provided an increase of $83.7 million or 6.3% from prior book values
• Total portfolio weighted average capitalisation rate firmed by 24 basis points from 5.66% to 5.42% at 31 December 2020
• Total portfolio value increased to $2.4bn
The valuation uplift was generated through a combination of leasing success and capitalisation rate compression.
The Arnott’s assets including 46 Robinson Road East, Virginia QLD and 23-41 Galway Avenue, Marleston SA increased in value by a combined $39.5m due to a 56 basis point tightening of the capitalisation rate.
37-51 Scrivener Street, Warwick Farm NSW increased by $7.25m with 125bp of capitalisation rate compression following the renewal of the
sole tenant on a new long term lease.
Jesse Curtis, CIP Fund Manager, commented, “Australian industrial real estate continues to be a desirable asset class being driven by investment demand from both domestic and international capital. Transaction evidence continues to demonstrate the strength of the sector underpinned by growth in online retailing, a defensive tenant base and scarcity
in the availability of quality investment grade assets.
“The portfolio valuations are reflective of the active management and major leasing outcomes achieved across CIP’s high quality portfolio together with the sector tailwinds and investor demand driving tighter industrial capitalisation rates.
With a high quality portfolio and robust tenant base, the CIP portfolio is well positioned to benefit from the continued buoyancy of the Australian industrial market.”
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