Centuria offloads office/warehouse for a premium
Centuria has sold a Willawong office/warehouse for a premium after renewing the sitting tenant, paint and coating specialist Azko Nobel, for five years.
The fund manager is banking $12.75 million for the 8053 square metre holding at 373 Sherbrooke Road, which has been held by an unlisted vehicle.
The buyer is a private investor.
CG Property Group’s Ben Clarke and Mil Gilbride were the agents.
Willawong is about 19 kilometres south of Brisbane.
373 Sherbrooke Road
With 3415 sqm – of which 41.5 per cent (or 1420 sqm) is offices – 373 Sherbrooke Rd was developed in 2015 for Akzo Nobel.
The property also contains 2000 sqm of hardstand and 52 on grade car parks.
The sale price is 31pc more than when the asset was valued last year when Azko’s lease had some 12 months to run.
The result is also a premium to the $10.66m Centuria paid Augusta Funds Management for the asset when new (story continues below).
Across its other vehicles – investing in office, daily needs retail and agriculture – Centuria owns 101 Queensland properties worth $3.5 billion.
Low supply/high demand area: Centuria
Industrial vacancy in south east Brisbane sits at a low 0.5pc, according to Centuria head of Industrial, Jesse Curtis.
“Limited vacancy and persistent tenant demand within infill industrial markets across the Australian eastern seaboard continues to drive outsized rental growth,” he added.
“This is a common theme across Centuria’s entire Australian industrial portfolio,” he said.
“These enduring strong market tailwinds continue to drive investor demand for quality industrial assets.
“Centuria acquired the [Willawong] asset in 2015 and, through value-add leasing, it has achieved a notable return for the fund’s investors.
“Centuria has a strong track record in sourcing strategic assets that lend themselves to value-add opportunities, where our in-house management capabilities can provide leasing, refurbishment, redevelopment or repositioning projects to maximise returns for our investors”.
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