This article is from the Australian Property Journal archive
PROACTIVE funds manager Centuria Capital continues to target counter-cyclical opportunities, with the acquisition of a prime industrial facility in Royal Park in Adelaide’s western suburbs for $22 million.
The Centuria Select Opportunities Fund (CSOF) has purchased a facility located at 7 Brandwood Street, Royal Park from Centennial. The 12,700 sqm warehouse, situated just 11km from Adelaide’s CBD.
The dual-tenant property, fully leased to blue-chip tenants Daikin Australia and Allied Express Transport, benefits from a 6.3-year weighted average lease expiry (WALE). Built on a 3.1-hectare corner site, it offers full drive-around access, extensive hardstand, and multiple on-grade roller doors. The facility also benefits from recent refurbishments that include energy-efficient LED lighting, solar panels, rainwater harvesting, and low-carbon materials.
This is the third asset purchased for CSOF after it raised $50 million in March and acquired a $23 million industrial logistics facility in Keysborough, in Melbourne’s southeast and $20 million for Wetherill Park facility in April.
Centuria’s head of funds management Jesse Curtis said the purchase aligns with CSOF’s strategy to target value-add opportunities in underperforming assets.
“Our in-house team has executed a targeted acquisition strategy that has seen us secure three quality assets for the Fund in 2024 alone, each offering compelling potential for upward rent reversions and value growth,” Curtis said.
The acquisition is part of CSOF’s broader 15-month capital deployment strategy, which aims for an internal rate of return (IRR) of 15%.
Curtis added that the Royal Park site enhances the fund’s diversification, both geographically and in terms of tenant profile, positioning it well for medium-term growth as rental values in the area are significantly below market.
Paul Ford, executive director at Centennial, said the sale culminates a successful strategy of transforming a vacant property to a fully leased asset.
“The Royal Park site had been vacant for several years before we acquired it in 2021. Its location and functional layout allowed us to refurbish the facility, incorporate sustainable improvements, and secure quality tenants before the refurbishment was even completed,” Ford said.
The Royal Park transaction was brokered by Colliers’ Gavin Bishop, Sean Thomson, and Paul Tierney, along with CBRE’s Chris O’Brien and Andrew Bell.
The Royal Park sale follows a string of transactions last month including Growthpoint selling a facility in Melbourne’s east for $22 million, at 13% above book value; and Warburg Pincus acquiring an inner Melbourne heritage warehouse site from Salta for $20.5 million, while on the other side of town a private investor has nabbed two freestanding facilities in the western suburbs for a similar amount; and Up Property Group picked up a Bayswater warehouse for $17.5 million from Brix Property Group.
