This article is from the Australian Property Journal archive
THE Centuria Industrial REIT (CIP) has offloaded an Eastern Creek property for $34.5 million, while also acquiring three new urban infill sites with an estimated end value of $59 million.
The divestment of the 6,020sqm non-descript asset at 20 Clay Place in Eastern Creek, NSW represented a 37% premium to the site’s prior book value of $25.2 million, with the property including 48% office space with a site coverage of 55%.
“Divesting of a non-descript asset presents an opportunity to recycle capital into higher yielding strategic acquisitions and developments. The strong premium to book value reinforces CIP’s Net Tangible Asset (NTA) backing and is demonstrative of CIP’s ability to deliver value to unitholders,” said Jesse Curtis, fund manager of CIP and head of industrial for Centuria.
Meanwhile the latest acquisitions include two development sites in WA and SA, in addition to a strategic investment industrial facility in VIC.
“The acquisitions build on CIP’s high quality industrial portfolio within urban infill, land constrained markets with access to densely populated catchments,” said Curtis.
The WA property at 204-208 Bannister Road in Canning Vale comprises a 2.5-hectare brownfield site acquired for $10.1 million, with an estimated end value of $31.1 million.
The end value would deliver a forecasted yield on cost of 5.25%, with the completed development in Q4 FY23 set to include circa 12,300sqm of modern sustainable industrial space, targeting 5 Star Green Star rating.
While in SA, Lot 16 Caribou Drive in Adelaide’s north adjoins an existing CIP property at 9-13 Caribou Drive, with the new 1.25-hectare site to comprise a 6,900sqm industrial facility for an individual tenancy or to extend the existing warehouse, consolidating as a 3.0-hectare landholding.
CIP spent $2.3 million on the new property, which has an end value estimated at $16 million, for a yield on cost forecast at 6%.
The asset in Victoria is located at 95 Fulton Drive in Derrimut, where CIP holds nine assets across 25.3-hectares at a combined value of $241 million.
The fully-leased property spans 5,331sqm and holds a short WALE of 0.7-years, allowing for a positive near-term rental reversion for CIP, while the acquisition also aligns with CIP’s strategy to create scale within land-constrained infill markets.
The Derrimut asset was acquired for $12 million, which reflects a 4.25% capitalisation rate.
