Centuria Industrial REIT (CIP) has secured Woolworths to a Central Coast logistics centre for five more years.
The occupier’s lease at the Wyong Regional Distribution Centre was set to expire in 2026.
The early renewal sees the Weighted Average Lease Expiry rise to 10.2 years.
CIP took management of the property, 2 Woolworths Way, Warnervale, four years ago.
The 54,196 square metre office/warehouse occupies a low 23 per cent of the 2.32 hectare site.
“We see growing market demand for leasing of food logistics assets reflecting increasing consumer demand for fresh food and the rise of food-related e-commence,” fund manager Jesse Curtis said.
“This is a structural trend we identified when we took management of CIP in 2017 and have since focused on leveraging in this area, by adding strategic food-related assets to our portfolio and securing long-term leases with blue chip tenants,” he added.
“Our Warnervale lease extension is a testament to this strategy”.
Following the commitment, CIP’s New South Wales portfolio WALE increases from 3.7 years to 5.9 years; 117,894 sqm has been leased this financial year.
Last month it was reported Woolworths planned to build a $100 million, 22,000 sqm automated distribution centre at Sydney’s west Auburn (story continues below).
“CIP has enjoyed a close working relationship with Woolworths across a number of properties,” a statement said.
It recently redeveloped a Townsville DC for the occupier, which, again, extended its tenancy term, in that case from seven years to 12.
Since FY19, CIP has acquired $214m worth of cold storage assets – the bulk in a landmark deal struck last November.
Eighteen months ago it spent an additional $236.2m on two biscuit making factories leased to Arnott’s.
The fund holds 17 NSW properties priced at a total of $686m – reflecting 26pc of its weighting (by value).
It has a low 1.2pc vacancy rate and 9.7 year WALE.
Warnervale is about 46 kilometres south west of Newcastle.