- The purchase of three industrial sites worth $86.1 million pushes Centuria Industrial REIT’s (CIP) portfolio value over $3 billion
- The three new properties enjoy a blended initial yield of five per cent, a weighted average lease expiry (WALE) of five years, and are fully occupied
- Following the off-market acquisitions that will be funded through existing debt facilities, CIP’s portfolio has increased to 66 properties
- CIP shares are up 0.27 per cent this morning, trading at $3.73 at 11:38am AEST
The purchase of three industrial sites worth $86.1 million has pushed Centuria Industrial REIT’s (CIP) portfolio value over $3 billion.
A recent revaluation pushed its portfolio value up $285 million, as a buoyant tenant marker and strong market conditions driving values up.
The three new properties enjoy a blended initial yield of five per cent, a weighted average lease expiry (WALE) of five years, and are fully occupied.
Following the off-market acquisitions that will be funded through existing debt facilities, CIP’s portfolio has increased to 66 properties.
“The three assets were secured off-market and continue to grow CIP’s exposure to the highly-sought after and tightly held infill industrial markets of Melbourne and Sydney,” CIP fund manager Jesse Curtis said.
“The portfolio provides a rare mixture of short WALE assets, providing the opportunity to add-value and take advantage of low vacancy rates through strategic leasing, while also adding a core long WALE asset.”
The $15.5 million acquisition of 40 Scanlon Drive, Epping, VIC comprises a 9371-square-metre distribution complex in a North Melbourne industrial zone, about 20 kilometres from the CBD.
Grace Australia (GCP Applied Technologies) and Gruma Oceania (Mission Foods) are the only tenants with a 2.8 WALE.
Broadmeadows, 110 Northcorp Boulevard VIC is a 15,704-square-metre manufacturing facility that is entirely leased to Rollease Acmeda and was acquired for $37.1 million.
It was obtained on a 4.9 per cent initial yield and has an 11.4-year WALE.
160 Newton Road, Wetherill Park NSW is a 13,233sqm distribution complex on a 2.2ha site in a infill outer central west Sydney industrial zone.
CIP said the site has limited land availability and vacancy rates of less than one per cent and was acquired to $33.5 million, with a WALE of 0.9 years.
“CIP’s strategy is to secure high-quality industrial assets within key metropolitan locations and this portfolio transaction is in keeping with this direction,” Mr Curtis said.
“These acquisitions continue to build our strong track record of identifying value and providing value-add opportunities through repositioning and active leasing to deliver reliable income returns and capital growth to our unitholders.”
CIP announced on Monday that it will be included in the Financial Times Stock Exchange (FTSE) European Public Real Estate (ERPRA) National Association of Real Estate Investment Trusts (Nareit) Global Developed Index.
The FTSE EPRA Nareit Global Developed Index is a global real estate index that tracks listed REITs’ performance based on liquidity, size and revenue.
CIP shares are up 0.27 per cent this morning, trading at $3.73 at 11:38am AEST.