This article is from the Australian Property Journal archive
QUEENSLAND properties leased to Bradnam’s Windows and Doors and Vulcan Steel, and the ACFS Port Logistics facility in South Australia have been revealed as the assets acquired by Centuria Capital Group for its new industrial fund that will launch on Monday.
Centuria announced in December the $62.5 million acquisition of the portfolio for the Centuria Industrial Income Fund No. 1 (CIIF1).
The fund will have a six-year initial fund term, with a forecast distribution yield of the remainder of FY21 of 6.00%, growing to 6.25% for FY22.
The three properties include a pair of Queensland assets. Centuria paid $39.6 million for a 16,000 sqm facility in Brisbane’s northern suburb of Boondall, at 136 Zillemere Rd, fully leased to national designer manufacturer and supplier of aluminium windows and doors products, Bradnam’s Windows and Doors, until June of 2031.
It also paid $12.4 million for a 5,000 sqm warehouse in Crestmead, in the Logan corridor. The 2-8 Titanium Ct facility in Crestmead is 100% occupied by Vulcan Steel until February of 2031.
Vulcan Steel is a steel distribution and processing company with operations throughout Australia and New Zealand.
In Adelaide’s Gillman, Centuria acquired a 7,200 sqm asset at 68-70 Kapara Rd for $10.5 million. ACFS Port Logistics, Australia’s largest privately-owned national port operator, has more than three years remaining on its lease.
Centuria’s portfolio includes $3.1 billion of industrial assets under management, across its Australian and New Zealand platforms. It has been looking to broaden its unlisted plaform offering.
“Industrial property has experienced strong tailwinds throughout the past 18 months, accelerated by a growth in online retail throughout the COVID-affected period, which is consequently driving demand for warehouse space and logistics hubs,” CIIF1 fund manager, Stuart Wilton said.
“The fund’s assets provide a diverse range of tenants across the logistics, manufacturing and distribution sectors, which are all located in core industrial markets within close proximity to major transportation infrastructure.”
The fund is aiming to reach its equity raising target of about $40 million by the end of February.
“Centuria has a strong track record with actively managing industrial and logistics properties nationwide as evident by our ASX-200 listed Centuria Industrial REIT (CIP), which is Australia’s largest listed pure-play industrial fund,” Ross Lees, Centuria’s head of funds management said.
“We aim to replicate the strong performance of CIP through this unlisted pure-play industrial fund.”
An uplift in value of Arnotts manufacturing facilities in Brisbane and Adelaide underpinned CIP’s $83.7 million portfolio revaluation uplift in December, further helped by Visy’s commitment to a new long-term lease at a Sydney facility.
