US billionaire buys major Melbourne shed
Centuria, for a mandate backed by Starwood Capital, co-found by US billionaire and global real estate investor, Barry Sternlicht, has picked up an inner west Melbourne warehouse.
The four hectare Tottenham investment, 1 Quarry Road, cost $32.8 million – a 4.16 per cent yield.
An 8016 square metre improvement leased to Cargo Freight Services until 2030 occupies only 20pc of the block, providing development upside.
The rent is 65pc below the market rate too, Centuria head of funds management, Jesse Curtis, added.
The price is also a 40pc discount on replacement cost, the executive said.
It is the fifth property acquired for the Last Mile Logistics Partnership, which has a $500m mandate. There is still some c$300m left to spend.
Counter-cyclical investment rewarded: agent
The Tottenham vendor outlaid $22.9m in mid-2022.
In a show of how fast industrial values have moved since the pandemic, that seller, GM Property, paid $16m in November, 2020.
Jones Real Estate’s Paul Jones was the agent.
The deal comes two months since Centuria, for an opportunity fund launched 2023, acquired adjoining Perth warehouses, known as the Canning Vale Industrial Estate, for $38.6m.
That vendor, ESR, outlaid $21.75m in 2016.
Tottenham is nine kilometres from town and Port of Melbourne.
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