Centuria, BGO seed partnership with three Sydney warehouses
A partnership, 95 per cent backed by BGO Close with the balance and management controlled by Centuria, has acquired three major west Sydney warehouse investments from Goodman.
The three assets – all up containing 45,000 square metres – are setting the entity back $201 million.
Two properties are in Smithfield – 28 Britton Street (pictured, top), and #45 on the road – 30 kilometres from the CBD.
The other asset is 17 Stanton Road, Seven Hills, 10km north of Smithfield.
The off-market deals come a year since we reported Centuria was creating an industrial supersite in Wetherill Park – four kilometres west of Smithfield – paying a rate of $2740 per sqm for one parcel.
Centuria partnership value surpasses $2b
Following settlement, Centuria will control industrial product worth $6.2 billion.
It will also be involved with partnerships managing assets worth $2.1b.
BGO, part of Sun Life Financial and supported locally by Cliffbrook Capital, is a global investor with a portfolio worth over $100b.
“We are elated to partner with BGO for the first time and will continue to seek opportunities across tightly-held industrial markets to grow the partnership,” Centuria joint chief executive officer, Jason Huljich, said.
“This type of institutional partnership speaks to the strong appetite from international capital seeking to harness the strong domestic industrial tailwinds, particularly within infill markets which benefit from proximity to households and businesses alike,” according to the executive.
Head of funds management, Jesse Curtis, said “this western Sydney portfolio again illustrates Centuria’s ability to secure rare, off-market quality assets for our institutional partners”.
They offer the potential for “strong positive rental growth” in the near term, he added.
“The properties also offer repositioning optionality,” according to the executive.
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