This article is from the Australian Property Journal archive
CENTURIA Industrial REIT has secured leases over two of its recent major acquisitions, which took its portfolio value beyond $1.3 billion.
The trust secured leasing deals over 34,652 sqm across eight transactions during the September quarter, making up 4.0% of its portfolio gross lettable area.
Among those were an extension over the Quiksilver industrial facility in North Geelong, which it bought mid-year as part of a three-property portfolio. The agreement with the brand’s parent company, Boardriders Inc., takes the asset’s weighted average lease expiry to 11.8 years.
Also part of the portfolio was a 12,553 sqm Hemmant facility, where CIP has leased 4,127 sqm of warehouse space and 5,500 sqm of hardstand to two tenants.
A $70 million placement was settled during the quarter, along with an upscaled unit purchase plan $21 million. Proceeds were used to complete acquisitions, including the Quiksilver warehouse and a Richlands property purchased at the same time.
Conditional exchange of 32-54 Kaurna Ave in Edinburgh Park for $19.5 million took place in September. Also in South Australia, a new lease was agreed with Fisher & Paykel over 7,027 sqm for a five year term at 9-13 Caribou Dr in Direk.
CIP’s remaining FY20 expiry has reduced to 5.3% as a result of the deals.
The trust reaffirmed its forecast FY20 funds from operations guidance growth of 2% to 3% per unit, with distributions of 18.7 cpu.
Also in the Centuria stable, the office focused Centuria Metropolitan REIT expanded its portfolio expanded to $1.8 billion with 22 office assets and over 275,000 sqm of net lettable area after the $380.5 million acquisition of A grade assets at 8 Central Ave in Sydney and William Square in Perth’s Northbridge.
The acquisitions also geographically reweighted CMA’s portfolio to 29% in NSW and 16% in Perth, while the Queensland allocation reduces from 35% to 27%.
Leases were struck across 8,168 sqm during the quarter, representing about 3.0% of portfolio area. Portfolio occupancy is at 99.0% with a WALE of 4.8 years.
In addition to a $273 million equity raising, the fund arranged for its existing debt facilities to be increased by $150 million through a number of new tranches.
FY20 FFO forecast guidance is 19.0 cpu, and distribution guidance of 17.8 cpu.
