- Centuria Industrial REIT (CIP) has obtained eight hectares of land at 95-105 South Gippsland Hwy, Dandenong South, VIC for $26.3 million
- The company has entered into a development management agreement to construct a six-asset industrial estate, requiring a $62.5 million investment, which will deliver an asset with an estimated end value of $88.8 million
- The transaction increases CIP’s portfolio to 63 assets, bringing the portfolio’s value upon completion to $2.7 billion
- The estate will be developed in collaboration with the vendor Cadence Property Group and built by Texco Construction
- The total gross lettable area will be about 40,380 square metres, with practical completion expected in 2022
Centuria Industrial REIT (CIP) has obtained eight hectares of land at 95-105 South Gippsland Hwy, Dandenong South, VIC for $26.3 million.
The company has entered into a development management agreement to construct a six-asset industrial estate, requiring a $62.5 million investment, which will deliver an asset with an estimated end value of $88.8 million.
The transaction increases CIP’s portfolio to 63 assets, bringing the portfolio’s value upon completion to $2.7 billion.
“This Dandenong South acquisition is a rare opportunity to secure a high quality, sustainable asset in a market affected by a scarcity of investment-grade industrial properties,” CIP fund manager Jesse Curtis said.
“The asset builds CIP’s value-add pipeline and delivers brand new industrial product to the portfolio creating further value for unitholders.”
“The strong performing southeast Melbourne industrial market is showing robust tenant demand with prime-grade vacancy currently around one per cent1 enabling CIP to leverage its leasing expertise,” he added
“The site is set to benefit from the newly announced Dandenong South Inland Port, enabling direct containerised freight from the port of Melbourne which is expected aid in leasing demand,” he concluded.
The estate will be developed in collaboration with the vendor Cadence Property Group and built by Texco Construction, with industrial units varying in size from 3,395 square metres to 13,610 square metres and catering to a wide range of industrial users.
The total gross lettable area will be about 40,380 square metres, with practical completion expected in 2022.
The asset will be funded through existing debt facilities.
CIP is up 0.58 per cent, trading at $3.48 per share at 1:26 pm AEST.