The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
6
print
Print
IndustrialTaryn ParisMon 08 Nov 21

Centuria Invests $129m on East Coast Industrial Assets

7383ed79-b9b6-42b9-bade-a40a1973a77b

Centuria has boosted its pure-play industrial fund with four assets in New South Wales, Victoria and Queensland to take its real estate investment trust portfolio to more than $3.6 billion in assets.

More than 80 per cent of the acquisitions are weighted to the hotly contested Sydney and Melbourne industrial markets on yields as low as 3.7 per cent.

Centuria Industrial REIT (CIP) fund manager Jesse Curtis said the acquisitions were strategic within tightly held industrial markets that were benefiting from low vacancy rates and increasing rental prices and demand.

“The acquisitions lend themselves to last-mile logistics and distribution tenant customers and benefit from strong tailwinds across Australia’s industrial sector, particularly from the strong rise in eCommerce adoption and supply chain onshoring,” Curtis said.

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

“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.”

Curtis said the 3.7 per cent yield on the $70-million transaction of 82 Rodeo Road at Gregory Hills in south-west Sydney was comparable to international industrial yields, following significant compression over the past two years.

CIP’s Sydney sub portfolio is now worth more than $1 billion after almost $370 million in transactions this year.

“Throughout the past 12 months, the prime Sydney industrial market has aligned itself more closely with global market yields due to eCommerce customer demand driving tenant requirements for warehousing within close proximity to a large population catchment,” Curtis said.

“Gregory Hills is highly desirable given south-west Sydney’s strong population growth and excellent connectivity to major arterials roads, accessing a large distribution network.”

CIP also spent more than $20 million on a Derrimut industrial facility, $18 million on a 2392sq m site at Port Melbourne, and $20.8 million on an industrial estate at Coopers Plains in Brisbane.

Colliers International’s Gavin Bishop, Sean Thompson and Fab Dalfonso were the agents for the Gregory Hills transaction. Simon Beirne and Levi Maxwell, also from Colliers, were appointed agents for Coopers Plains.

CBRE’s Ben Hegerty was the agent for the Derrimut transaction and Dawkins Occhiuto’s Chris Jones and Walter Occhiuto were the agents for the Port Melbourne transaction.

The weighted average lease expiry across the four sites is 3.5 years, with an average yield of 4 per cent.

IndustrialAustraliaBrisbaneMelbournedo not useReal EstateSector
AUTHOR
Taryn Paris
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
Qld Budget 2025-26 Brisbane City
Exclusive

Billions Promised, Now Deliver: Industry’s Qld Budget Verdict

Vanessa Croll
6 Min
View All >
Charter Hall’s $925m Hyde Park skyscraper
Planning

Charter Hall $925m Sydney Skyscraper Wins City Backing

Vanessa Croll
A rendering of the three-storey apartment project Arca by Red & Co at Stafford near Brisbane.
Residential

‘Confident’ Red & Co Starts Work on Stafford Apartments

Marisa Wikramanayake
Residential

Consolidated Reveals Next Riverfront Play in $64m Deal

Leon Della Bosca
Don O’Rourke has put his foot on “the last absolute riverfront site” and will reveal his plans before year’s end...
LATEST
Charter Hall’s $925m Hyde Park skyscraper
Planning

Charter Hall $925m Sydney Skyscraper Wins City Backing

Vanessa Croll
3 Min
A rendering of the three-storey apartment project Arca by Red & Co at Stafford near Brisbane.
Residential

‘Confident’ Red & Co Starts Work on Stafford Apartments

Marisa Wikramanayake
2 Min
Residential

Consolidated Reveals Next Riverfront Play in $64m Deal

Leon Della Bosca
2 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/centuria-invests-129m-on-east-coast-industrial-assets