Centuria Industrial REIT acquires two high quality Derrimut industrial facilities

29 January 2021

Centuria Industrial REIT has had a strong start to the second half of FY21 with the acquisition of two modern distribution centres in Derrimut, VIC for $37.25m on an average initial yield of 5.1%.

Both modern assets provide 100% occupancy and a 4.6-year portfolio WALE. The properties add to CIP’s existing three assets within Derrimut, providing a critical mass in the well-established and highly sought-after Victorian industrial corridor.

The acquisitions increase CIP’s portfolio weighting to Victoria by 1% to 38%.

179 Studley Court is 100% leased to global automotive manufacturer Volkswagen Group with a 4.2-year WALE. The property includes 9,536sqm of warehousing and 400sqm of modern office space on a 2.2ha site.

513 Mount Derrimut Road is 100% leased to Tasman Logistics Services Pty Ltd with a 5.0-year WALE. The Property includes a 12,000sqm warehouse and 601sqm office space within a 2.8ha site.

Jesse Curtis, CIP Fund Manager, said, “The two Derrimut acquisitions were off-market opportunities that expand the Trust’s critical mass, now totalling five stabilised assets, within this well-established industrial market. The properties are underpinned by strong tenant covenants with well-known national and international customers contributing to CIP’s reliable income streams.

“Both assets provide low site cover within an in-demand precinct providing the opportunity to deploy our active management approach to build on CIP’s already high quality portfolio. As Australia’s largest ASX listed pure-play industrial fund these acquisitions continue to demonstrate CIP’s ability to identify relative value for high quality industrial assets in a highly competitive environment.”

Both assets were constructed in 2008. The acquisitions will be funded using existing debt facilities.

Derrimut provides excellent connectivity to transport arterials including the Western Freeway and the Western Ring Road while being only 20km west of Melbourne’s CBD.

CIP will report its first half FY21 results on Tuesday 2 February 2021.