Rental Gains in Centuria Industrial REIT a picture of things to come

Centuria Industrial REIT today announced it has leased 106,832 sqm across 22 transactions since 1 July 2021, illustrating strong nationwide demand for industrial space particularly from ecommerce-related tenant customers. The leasing success resulted in 10.0% rental growth from prior passing rents.

The substantial leasing activity has increased CIP’s occupancy to 99.1% and maintained a Weighted Average Lease Expiry (WALE) of 8.9 years. This recent leasing activity accounts for 8.0% of the portfolio’s gross lettable area (GLA).

Jesse Curtis, CIP Fund Manager and Centuria’s Head of Industrial, said, “CIP has delivered significant leasing outcomes since the start of FY22. This leasing activity and positive rental growth is driven from Centuria’s proactive in- house asset management team, who capitalise on the quality of CIP’s urban infill focused portfolio together with the industrial sector’s record low vacancy rates and elevated tenant demand.”

FY22 YTD Major renewals include:

• 12 Williamson Road, Ingleburn NSW – renewed Real Pet Food Company over 25,666 sqm on a new 15-year triple net lease.
• 23 Selkis Road, Bibra Lake WA – renewed Opal Packaging Australia over 19,173 sqm on a new 10-year lease.

Value-add initiatives executed in FY22 YTD that resulted in positive leasing outcomes include:

• 48-54 Kewdale Road, Welshpool WA – acquired in September 2021, started refurbishment works, and secured a 6,441 sqm lease (32% of the asset) to existing tenant, AMES Australasia.
• 55 Musgrave Road, Cooper Plains QLD – acquired in October 2021 with 89% occupancy and leased more than 2,500sqm (23% of the asset) to two new tenants. The asset is now 100% occupied.
• 8 Lexington Drive, Bella Vista NSW – agreed terms over 8,740 sqm to a major international ecommerce brand on a new 10-year lease.
• Southside Industrial Estate, Dandenong South VIC – current pre-commitments total c.20% of the development. Terms agreed with two tenants over 7,750sqm, one of which is an existing CIP portfolio tenant. The development continues to attract strong leasing interest with the estate’s practical completion due in August 2022.

Jesse Curtis continued, “This significant leasing activity has delivered immediate value to CIP investors. We continue to source and deliver on exceptional value-add opportunities including refurbishments and developments to achieve higher rental rates and attract high-calibre national and international clients. Evidenced through recent acquisitions and leasing success, this has demonstrated CIP’s ability to identify and execute on relative value within the transactions market.”

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