Centuria buys two more Derrimut warehouses

Tasman Logistics Services occupies the biggest of Centuria Industrial REIT’s two new Derrimut warehouses.

Centuria Industrial REIT (CIP) has outlaid $37.25 million on two Derrimut warehouse investments.

The value reflects a blended initial yield of 5.1 per cent.

The Mount Derrimut Road property is leased for five years.

The deal increases the fund’s Victorian weighting a basis point (to 38pc).

CIP now holds five assets in the suburb.

The announcement comes a day after Centuria Capital Group confirmed it spent $62.5m on a portfolio comprising two warehouses in Brisbane and another in Adelaide.

Those properties will be held by a new trust: Centuria Industrial Income Fund No 1.

CIP’s latest assets

The latest CIP Derrimut investments were offloaded by Caine Property.

Both were constructed in 2008, on opposite sides of the Western Freeway.

The biggest by area (2.8 hectares) is 513 Mount Derrimut Road.

Tenanted to Tasman Logistics Services, it includes a 12,000 square metre warehouse and 601 sqm office.

The Weighted Average Lease Expiry is five years (story continues below).

The second property, 179 Studley Court, is across the road from the landmark Mainfreight Logistics base, which is highly exposed to the Western Ring Rd.

Volkswagen occupies the CIP asset as a parts centre.

On 2.2ha, it contains 9536 sqm of factory floor and a 400 sqm office.

Its WALE is 4.2 years (making the blended result 4.6 years according to the purchaser).

“The two Derrimut acquisitions were off-market opportunities that expand the trust’s critical mass, now totaling five stabilised assets, within this well established industrial market,” CIP fund manager Jesse Curtis said.

“Both assets provide low site cover within an in-demand precinct providing the opportunity to deploy our active management approach to build on CIP’s already high-quality portfolio,” the executive added.

“As Australia’s largest ASX listed pure-play industrial fund these acquisitions continue to demonstrate CIP’s ability to identify relative value for high quality industrial assets in a highly competitive environment”.

Derrimut is about 18 kilometres north west of Melbourne, abutting established residential neighbourhoods at Deer Park and Sunshine.

Five weeks ago the state government’s HealthShare Victoria rented a 3.5ha warehouse in the suburb, owned by Primewest.

Last April Austpac Logistics leased a 3.3ha property at the suburb’s Gilbertson Estate business park.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco