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Centuria Industrial (ASX:CIP) - Fund Manager, Jesse Curtis
Fund Manager, Jesse Curtis
Source: Centuria Industrial
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  • Centuria Industrial REIT (CIP) purchases four high-quality, freehold industrial sites for a total of $129.4 million, all of which are 100 per cent weighted to eastern coast markets
  • CIP says it can capitalise on positive rental reversions from present under-renting by using the weighted average lease expiration (WALE) length
  • The WALE across the portfolio is 3.5 years, with an initial four per cent yield and a gross lettable area of over 46,000
  • Jesse Curtis, CIP Fund Manager and Centuria’s Head of Industrial says the acquisitions lend themselves to last-mile logistics and distribution
  • Shares in CIP are up 1.09 per cent to $3.72

Centuria Industrial REIT (CIP) has purchased four high-quality, freehold industrial sites for a total of $129.4 million, all of which are 100 per cent weighted to eastern coast markets.

The assets are located in core, closely-held industrial regions that are seeing substantial rental growth as a result of increased tenant demand.

CIP said it can capitalise on positive rental reversions from present under-renting by using the weighted average lease expiration (WALE) length.

The WALE across the portfolio is 3.5 years, with an initial four per cent yield and a gross lettable area of over 46,000. The acquisitions will be financed through existing and new financing sources.

Jesse Curtis, CIP Fund Manager and Centuria’s Head of Industrial said the acquisitions lend themselves to last-mile logistics and distribution.

“These assets align with CIP’s strategy to acquire properties located in land constrained urban infill markets, where tenant demand currently outstrips forecast supply,” he said.

“The portfolio of assets provides a number of opportunities to actively manage the portfolio to add-value through capturing outsized rental growth from under-renting of the assets and potential development or activating higher and better use potential.”

82 Rodeo Road, Gregory Hills, New South Wales is a Super Prime-Grade, transport logistics complex located in Sydney’s south-west development corridor.

CIP said the area benefits from high population growth and connectivity to key arterial roads, allowing access to a wide distribution network. GMK Logistics has a 100 per cent lease on the property, which is deemed under-rented.

In Victoria, 30 Fulton Drive, Derrimut is a distribution centre that complements CIP’s existing critical mass land holdings in Melbourne’s west.

The property is entirely leased to Signoide Australia and offers an extra value-add potential to activate development on surplus land to enhance the building’s footprint.

Also in Victoria, 870 Lorimer Street, Port Melbourne is an office/warehouse complex that is located in the Port Melbourne infill area and has access to a vast and rising population catchment. The location and zoning allow additional potential value-add options for future, higher and better usage, according to CIP.

Cooper Plains’ 55 Musgrave Street, Queensland is in an industrial urban infill area in Brisbane’s south. The property has four tenants and an immediate chance to create value by leasing the current vacancy and aggressively controlling forthcoming expiries.

Shares in CIP were up 1.09 per cent to $3.72 at 3:31 pm AEDT.

CIP by the numbers
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