Centuria Industrial REIT has acquired four high- quality, freehold industrial assets for a collective $129.4million, 100% weighted to eastern seaboard markets.
The properties are within core, tightly held industrial markets benefitting from strong rental growth on the back of rising tenant demand. The weighted average lease expiry (WALE) duration provides CIP with the opportunity to capitalise on positive rental reversions from current under-renting.
Jesse Curtis, CIP Fund Manager and Centuria’s Head of Industrial said, “The acquisitions lend themselves to last-mile transport logistics and distribution tenant customers and benefit from strong tailwinds across Australia’s industrial sector, particularly from the strong rise in eCommerce adoption and supply chain onshoring.
“These assets align with CIP’s strategy to acquire properties located in land constrained urban infill markets, where tenant demand currently outstrips forecast supply. The portfolio of assets provides a number of opportunities to actively manage the portfolio to add-value through capturing outsized rental growth from under-renting of the assets and potential development or activating higher and better use potential.”
Acquisitions
| Properties | State | Purchase price1 | Initial yield | Cap rate | GLA1 (sqm) | WALE1 (yrs) | Occupancy |
| 82 Rodeo Road, Gregory Hills | NSW | $70.0m | 3.7% | 3.88% | 22,439 | 4.2 | 100% |
| 30 Fulton Drive, Derrimut | VIC | $20.6m | 4.9% | 4.50% | 10,733 | 2.0 | 100% |
| 870 Lorimer Street, Port Melbourne | VIC | $18.0m | 4.1% | 4.00% | 2,392 | 2.5 | 100% |
| 55 Musgrave Road, Cooper Plains | QLD | $20.8m | 4.1% | 5.25% | 10,962 | 3.4 | 89% |
| Total / weighted average | $129.4m | 4.0% | 4.22% | 46,526 | 3.5 | 98% |
82 Rodeo Road, Gregory Hills is a Super Prime-Grade, modern transport logistics facility within Sydney’s south west growth corridor benefitting from strong population growth and excellent connectivity to major arterials roads, accessing a large distribution network. The property is 100% leased to GMK Logistics and is considered under-rented.
30 Fulton Drive, Derrimut is a quality distribution centre and builds on CIP’s existing critical mass land holdings in Melbourne’s inner west. The property is 100% leased to Signoide Australia Pty Ltd and provides additional value-add opportunity to activate expansion on surplus land to increase the area of the building.
870 Lorimer Street, Port Melbourne is an office/warehouse facility located in the infill market of Port Melbourne and provides access to a large and growing population catchment. The location and zoning provides additional potential value-add through a range of future, higher and better use opportunities.
55 Musgrave Street, Cooper Plains is located within an industrial urban infill market in Brisbane’s South. The property provides four tenancies and the immediate opportunity to add-value through leasing the existing vacancy and actively managing upcoming expiries.
The acquisitions will be funded through new and existing debt facilities.
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