Centuria boosts industrial pipeline

A Derrimut warehouse Centuria purchased last January.

Centuria, on behalf of the Industrial REIT (CIP), has bought and sold an east coast warehouse, and boosted its industrial development pipeline with small Adelaide and Perth blocks.

In Sydney, the manager has sold an Eastern Creek investment for $33 million reflecting a 37 per cent premium to book value ($25.2m).

It paid $13.3m in 2003; on 1.1 hectares, the asset, 30 Clay Place, contain a 6020 square metre improvement covering just over half the site.

The sale to an offshore group is subject to Foreign Investment Review Board approval.

Meanwhile in Melbourne, Centuria has outlaid $12m for a 5331 sqm industrial investment on 1.1ha at 95 Fulton Drive, Derrimut, part of a business park.

The sale is a boon for the vendors, private investors, which spent $6.18m in 2018.

The property was for much of the last decade owned by Valad which paid $3.9m in October, 2009 – as the economy was recovering from the Global Financial Crisis.

Centuria now holds nine assets in the Gilbertson Industrial Estate, acquired over the last few years, covering 25.3ha (part shown in image, top) and worth $241m.

SA, WA sites

Centuria also today announced the purchase of two industrial development sites (story continues below).

At Canning Vale, south of Perth, it has picked up a 2.5ha block at 204-208 Bannister Road for $10.1m.

Based on the end value of the 12,300 sqm business park it intends to developing – c$31.1m – the property should yield 5.25pc.

In Adelaide’s Direk, meanwhile, the manager has spent $2.3m for 16 Caribou Drive with plans to construct a c$16m estate with 6000 sqm (an asset, it said, which should provide a circa six per cent return).

With a neighbouring CIP investment (9-13 Caribou Dve), it now holds an amalgamated three hectares.

Centuria also controls another property in the street – #36, an investment on 5.5ha, purchased last year.

“The development sites expand CIP’s strategy to deliver high-quality assets in supply constrained markets where vacancy rates are limited while the REIT’s divestment provides an opportunity to immediately deploy proceeds back into accretive value-add development initiatives,” CIP manager and head of Centuria Industrial, Jesse Curtis, said.

“Divesting a non-descript asset presents an opportunity to recycle capital into higher yielding strategic acquisitions and developments,” he added.

“We continue to position the portfolio towards capturing rising tenant demand while benefitting from rental growth in highly sought industrial markets,” according to the executive.

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Marc Pallisco

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