Centuria banks $56m from south east Queensland warehouses
Centuria has sold three south east Queesland industrial investments on behalf of single asset funds.
The deals for 76 Quinns Hill Road, Stapylton East, on the Gold Coast and in Brisbane, 7/121 Evans Rd, Salisbury and 174 Stradbroke Street, Heathwood, with separate buyers, total $56 million – a 25 per cent premium to book value.
The internal rates of return (the percentage return on investment including rent and profit from an onsale, less costs, reflected an annual rate) are between 11.4-12pc.
“The domestic industrial market has benefitted from strong tailwinds in recent years, which have persisted with limited supply, impeding construction costs and continuous population growth,” Jesse Curtis, Centuria head of Funds Management, said.
“However, in southeast Queensland, these tailwinds have been bolstered further by infrastructure investment resulting from the region readying itself for the 2032 Olympic Games,” he added.
“The strength of investment demand for industrial assets within key southeast Queensland growth corridors is evident by the number of non-solicited approaches we’ve received, which has helped us achieve strong sales premiums to prior book values,” according to the executive.
Brisbane, Gold Coast assets
The priciest property, 76 Quinns Hill Rd, collected $40m.
Centuria paid $23m in 2016; the 2.4 hectare holding contains a 14,812 sqm office/warehouse developed in 2011, leased to Nu Pure and A&L.
With the result 14pc over book value, unitholders will be delivered a 12pc IRR.
Modus’ Jack Pershouse was the agent. The buyer is an institution.
In Salisbury meanwhile, 7/121 Evans Rd – an 8275 sqm block – collected $10.45m.
Centuria outlaid $6.13m in April, 2015.
The disposal price was a nine pc premium to book value.
The IRR is 12pc.
Colliers’ Gavin Bishop and Sean Thomson brokered this deal to a private investor.
Lastly, 174 Stradbroke St is trading for $10m – a 54pc premium to the last book value.
With Centuria paying $3.28m in 2005, unitholders will be delivered an 11.4pc IRR.
Colliers’ Levi Maxwell and David Brisk were the agents. The buyer is again a private investor.
With 2970 sqm, on 8257 sqm, this asset was vacant.
The others have imminent lease expiries.
The deals come a week since we reported Centuria and BGO formed a partnership with three west Sydney industrial investments worth a total $201m.
In March meanwhile Centuria acquired a Perth business park from ESR, outlaying $38.6m.
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