Centuria acquires three east coast industrial investments
Centuria has spent $86.1 million on three more industrial investments.
In Sydney, the group is paying $33.5m for a 13,233 square metre distribution centre on 2.2 hectares at 160 Newton Road, Wetherill Park.
Sharp Corporation rents the biggest space – spreading 7591 sqm.
Yusen Logistics’ Hi Tech Asia Pacific is the other occupier.
The blended Weighted Average Lease Expiry by income is less than a year.
The vendor, Leda Holdings, picked it up as part of a $71m portfolio with five other industrial investments in May, 2017.
That seller was Simonson Properties.
Centuria owns another asset in the street – #74.
Melbourne properties
In Melbourne’s Broadmeadows, Centuria is spending $37.1m for a manufacturing plant on 3.1ha at 110 Northcorp Boulevard (pictured, top).
Tenanted to Rollease Acmeda, which makes window coverings, it contains a 15,704 sqm warehouse.
The WALE – 11.4 years – is substantially longer than the other two properties.
Both the Wetherill Park and Broadmeadows deals are being struck at a 4.9 per cent passing yield.
The third investment Centuria has purchased, 40 Scanlon Drive, Epping, is costing $15.5m.
On 1.8ha, it contains a 9371 sqm warehouse occupied by two tenants: Grace Removals, and Mission Foods’ Gruma Oceania, which distributes its tortilla range from there (story continues below).
The vendor was Australian Unity which outlaid $13.3m in August, 2019.
It was independently valued last May at $13.5m – which assumed a six pc capitalisation rate.
Centuria is paying a price reflecting a 5.5pc passing return.
The WALE is 2.8 years.
Assets earmarked for CIP
The blended yield for the Wetherill Park, Broadmeadows and Epping investments is five per cent.
Centuria will hold them in its Industrial REIT (CIP).
With 66 properties, this trust is now worth just over $3 billion with a 9.7 year WALE and 1.2pc vacancy rate.
“The three assets were secured off-market and continue to grow CIP’s exposure to the highly sought-after and tightly held infill industrial markets of Melbourne and Sydney,” fund manager Jesse Curtis said.
“The portfolio provides a rare mixture of short WALE assets, providing the opportunity to add-value and take advantage of low vacancy rates through strategic leasing, while also adding a core long WALE asset,” he added.
The trust now holds nine middle-ring north Melbourne assets – all up worth $219m.
“CIP’s strategy is to secure quality industrial assets within key metropolitan locations and this portfolio transaction is in keeping with this direction,” according to Mr Curtis.
“These acquisitions continue to build on our strong track record of identifying value and providing value-add opportunities through repositioning and active leasing to deliver reliable income returns and capital growth to our unitholders”.
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