This article is from the Australian Property Journal archive
CENTURIA has snapped up an industrial facility in Malaga for $10.8 million, with the off-market sale setting a precinct yield at 5.0%.
The 1.5-hectare site at 431 Victoria Road, sitting around 11km north of the Perth CBD, was sold to the unlisted closed-ended Centuria Industrial Income Fund No.1 (CIFF1), managed by Centuria Capital Group.
Ross Palframan and Nick Goodridge from JLL brokered the sale in an off-market transaction, trading at a new initial yield of 5.0%, a new record for the northern industrial precinct.
The site features a 4,912sqm industrial facility that boasts immediate access to Reid and Tonkin Highways.
“431 Victoria Road provides a long-term income stream secured by a strong leasing covenant, as well as future development potential with its low site coverage of circa 33%,” said Palframan, associate director at JLL industrial & logistics.
The facility is 100% leased on a seven-year term to Select Plant Hire, a subsidiary of Laing O’Rourke, the international engineering and construction parent company.
“The site is a strategic landholding within close proximity to key residential catchments, allowing CIIF1 significant future value-add opportunity,” added Palframan.
Palframan noted that the sale highlights the ongoing yield compression that has followed into 2022 after an active year for the investment market, as well as confirming the demand for institutional investments in the WA logistics and industrial sector.
“With WA’s economy being a stand-out amongst the country the local industrial market has benefitted from significant and diverse occupier demand, supporting unmatched levels of liquidity across the investment landscape,” said Nick Goodridge, head of industrial & logistics at JLL, WA.
CIIF1 was established a year ago with three assets in Queensland and South Australia, now including four industrial properties for a combined value of $88.1 million, with a 7.8-year WALE and 100% occupancy.
“Due to the industrial sector’s strong tailwinds providing robust revaluations, coupled with the fund’s debt headroom, we acquired the Malaga industrial facility to deliver value to our investors through an enhanced portfolio by providing greater diversification and scale,” said Ross Lees, head of funds management at Centuria.
