Centennial sells distribution centre, winds up fund
Centennial has sold a south Brisbane logistics estate after nearly nine years.
The asset manager is banking $19.1 million for the Heathwood Distribution Centre, on 1.46 hectares at 52 Morton Street, Heathwood.
It paid $7m for what was its first logistics trust – PIF, or the Property Income Fund – which, with this sale, has been wound up.
Unitholders will have been delivered a 15.8 per cent internal rate of return, a spokesperson said.
Fund winds up
Leased to Yokohama until July, 2027, the Heathwood asset contains a 7250 square metre single level office/warehouse.
The improvement was extended 2325 sqm in 2020.
“The exceptional sales result achieved for Heathwood Distribution Centre demonstrates the company’s broad and in depth understanding of the mid-space industrial market where it can apply its value-add strategy, that typically targets assets between 1000-15,000 sqm and turn overlooked assets into institutional grade investments,” Centennial joint managing director, Paul Ford, said.
“Under capitalised, mid-space assets are still generally overlooked by institutional investors, given they are viewed as too labour intensive to manage from both leasing and upgrading perspectives,” he added.
The diversified asset manager has bought 18 properties worth a total $750m since 2023, according to the executive.
The bulk (15) were on east coast industrial investments, he said.
Over the same period, Centennial sold 37 assets worth a combined c$725m.
One, in Pinkenba, in May collected $18.5m – a significant rise on what it paid four years earlier.
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