Centuria Industrial with $27m Ardnell Park Acquisition

12 April 2021

Centuria Industrial REIT has announced the acquisition of a high quality modern distribution centre, located in the tightly held infill industrial market of Arndell Park, in Central West Sydney, for $27million.

The acquisition was secured on a 2.2-year Weighted Average Lease Expiry (WALE), fully let to civil and construction infrastructure supplier, Jaybro Pty Ltd who have occupied the site since 2014. The acquisition price reflects a 4.7% initial yield.

Located at 29 Penelope Crescent, Arndell Park, the property includes 9,400sqm of generic industrial space within a 1.9-hectare site (49% site coverage). It is in close proximity to CIP’s existing 8 Penelope Crescent warehouse.

Lend Lease APPF Industrial Fund acquired a 2.3ha site at 25 Holbeche Road in 2019 for $15.2m ($637/sqm). The site adjoined their existing asset at 27 Holbeche Road and had plans to develop the site with a freestanding building of 12,150 sqm.

Jesse Curtis, CIP Fund Manager, said, “The acquisition is CIP’s second strategic, infill Sydney industrial transaction within seven weeks having recently completed on a Bella Vista warehouse. The high-demand Arndell Park market is characteristic of limited warehouse stock and benefits from its infill location, close to major infrastructure.

“It increases CIP’s exposure to Sydney’s central western industrial market and supports the REIT’s strategy of securing high-quality industrial assets within infill markets.”

The Arndell Park transaction takes CIP’s acquisitions throughout FY21 to 13 assets, worth $784million. The acquisition will be funded with existing debt and settlement is expected in September 2021.

CIP is the largest listed pure-play industrial REIT on the ASX. The portfolio now includes 62 high-quality industrial assets and total portfolio value of more than $2.6billion.

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