Centennial has bought two Sydney investments for its four month old Industrial and Logistics Enhanced Value Partnership (CILEVP), co-controlled with Brookfield Asset Management.
In the biggest deal, the fund is paying Centuria $83.64 million for adjoining business parks covering a consolidated 4.187 hectares at 114-120 Old Pittwater Road, in the northern beaches suburb of Brookvale.
With three warehouses containing 20,607 square metres, Fujifilm, Service NSW and Woolworths are amongst the major occupiers, though it is largely vacant.
The property also includes 538 car parks. The location is said to have a catchment of 971,690 households within an hour drive.
Centuria managed Primewest paid Dexus $44m for the assets in July, 2012, since holding them in an unlisted closed end trust in which unitholders will now see out a 13.8 per cent internal rate of return.
The disposal price was about $2.5m below the June, 2023, book value.
It also reflects a 3.9 per cent passing yield but a 9.44pc fully let market return; the weighted average lease expiry is 1.9 years. The property offers multi-level development upside too.
Settlement is scheduled next month (story continues below).
Prestons cold storage facility
In south west Prestons meanwhile, Centennial has secured a cold storage facility from Charter Hall which held it in $3.5 billion Direct Industrial Fund No 4.
The 5.326ha asset, 115-121 Jedda Rd, is costing $79m – like Brookvale, about a $2m on drop on a recent appraisal.
With two temperature-controlled buildings containing 15,030 sqm, near the Orbital Network, Camden Valley Way and the Hume Highway, the asset was built for Primo, a subsidiary of JBS Foods; which still occupies; the WALE by income is 5.87 years.
DIF4 has now sold five of what it calls older style, non-core assets since last August – all up banking over $135m.
“This significant transaction highlights the strong investor demand for strategically located assets leased with strong covenants and within resilient and defensive sectors such as cold storage,” Cushman & Wakefield’s Tony Iuliano, who brokered the Prestons deal with Simon Fenn, said. “The supply of these facilities within Australia is well below historical averages”.
CILEVP, expected to manage a portfolio worth c$700m, now holds seven properties worth $293m.
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