Centuria Industrial REIT spends $32.5m on assets in Melbourne, Brisbane

The Beacon Lighting distribution centre at 140 Fulton Drive, Derrimut. Source: Google Street View.

Centuria Industrial REIT (CIP) has acquired two commercial investments and settled on the purchase of two more – making for a $463.2 million spending spree last month.

In the biggest deal, the Centuria Property Funds No 2 managed trust is paying $20m for a west Melbourne distribution centre leased to Beacon Lighting for eight years with an option to extend until 2035.

Breezway’s headquarters at Coorparoo, about four kilometres south east of Brisbane.

The two hectare holding with an 11,469 square metre office/warehouse at 140 Fulton Drive, Derrimut, within the Gilbertson Industrial Estate, was majority controlled by the Robinson family – the retailer’s biggest shareholder.

Its sale price reflects a 5.5 per cent yield.

Brisbane asset can be targeted to last-mile users later: purchaser

In Brisbane’s inner south east Coorparoo – CIP is spending $12.5m on a manufacturing plant and office occupied by Breezway Australia as its headquarters (pictured top and above right).

On 8949 sqm at 35 Cambridge Street it also has an eight year weighted average lease expiry.

However the transaction value reflects a better yield for the landlord.

Longer term, CIP said, the 6065 sqm of site improvements could be repositioned and targeted to last-mile users (story continues below).

The property is a couple of hundred metres from Norman Creek, also the East Brisbane border.

“The acquisitions build on CIP’s strategy to acquire fit-for-purpose, high-quality industrial assets in key in-fill locations throughout Australia,” a group statement said.

“Both assets expand CIP’s presence in core industrial markets, providing the addition of a prime industrial asset in Melbourne’s west and opportunity to expand CIP’s value-add pipeline in a last-mile market in Brisbane”.

CIP worth $2.1b now

Elsewhere in Melbourne, CIP yesterday said it seized control of two properties reported to have been acquired earlier this month including a 10,275 sqm office/warehouse on a 1.7ha Commercial 2 zoned plot at 51-73 Lambeck Dve, Tullamarine, leased to Hellman Worldwide Logistics for nearly three more years – which cost $14m.

The trust also paid Telstra $416.7m for a 3.2ha multi-building data centre in Clayton.

Earlier this year, the fund spent $16.4m on an industrial investment at 144 Hartley Road, Smeaton Grange, 60 kms south west of Sydney.

Including the Derrimut and Coorparoo properties, CIP controls 55 assets worth a total of $2.1 billion.

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Marc Pallisco

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