This article is from the Australian Property Journal archive
AUSTRALIA’S largest listed pureplay industrial fund Centuria Industrial REIT (CIP) has entered a partnership with an investment vehicle sponsored by Morgan Stanley Real Estate Investing (MSREI).
Centuria Prime Logistics Partnership (CPLP) will see the MSREI investment vehicle acquire a circa 50% interest in eight of CIP’s prime-grade industrial assets for a combined price of $180.9 million.
“The formation of this partnership demonstrates the resilience of CIP’s portfolio and the continued demand for high quality industrial assets within urban infill markets in which CIP operates,” said Jesse Curtis, fund manager at CIP and head of industrial at CIP.
These properties will include three NSW assets: 8 Lexington Drive, Bella Vista, 29 Glendenning Road, Glendenning and 52-74 Quarry Road, Erskine Park.
In addition to three assets in Victoria, including 95-105 South Gippsland Hwy, Dandenong South, 40 Scanlan Drive, Epping and 69 Studley Court, Derrimut.
As well as two properties in Queensland’s Bundamba, with 42 Hoepner Road and 1 Ashburn Road.
“Establishment of this partnership, along with other recently completed divestments, demonstrates CIP’s ongoing commitment to prudent capital management and portfolio optimisation,” added Curtis.
For CIP this represents a divestment yield of 4.7% and will enable CIP to strengthen its balance sheet, lowering its debt and gearing, while still retaining its exposure to the strategic properties.
The transaction follows the REIT’s offloading of 30 Clay Place, Eastern Creek NSW for $34.5 million, on top of CIP recycling $215.4 million in assets over the financial year.
“This new partnership expands our existing relationship with MSREI, having established the pure-play healthcare real estate vehicle, Centuria Prime Partnership, in May 2022,” said Jason Huljich, joint CEO at Centuria.
“Our access to diverse property sectors continues to present opportunities for us to increase the institutional capital that is seeking to partner with Centuria.”
CBRE acted on CIP’s behalf for the transaction, which is expected to settle in December 2022.
