Betting big on a heavy favourite—the logistics sector—is showing no signs of slowing with Centuria Capital securing a $70.6-million industrial facility in Sydney’s west.
The acquisition doubles its assets under management on behalf of US private investment firm, Starwood Capital’s Last Mile Logistics Partnership (LMLP).
The Sydney-based fund manager announced the $500-million Starwood mandate only two months ago with three seed assets totalling $76 million.
With the recent purchase it has almost doubled the Starwood fund’s assets under management to $147 million.
Under the latest deal, it has secured a 19,231sq m dual access, multi-tenanted facility with a low site coverage of 41 per cent at 19-21 Loyalty Road, North Rocks.
The asset—acquired from billionaire Bob Ell’s Leda Holdings—is fully occupied and has a 2.3-year weighted average lease expiry (WALE).
“The divestment provides opportunities for Leda to build on its pipeline of industrial and residential projects, while opening the door to new prospects in the market,” Ell said.
According to Centuria, the asset also provides proximity to 1.5 million households within a hour’s drive “making it an ideal infill industrial logistics asset”.
“This off-market acquisition is part of Centuria’s strategic industrial investment approach to secure assets for LMLP with short WALEs, which provide an opportunity to capitalise on strong rental reversion opportunities, driven by low vacancies within key urban markets,” Centuria joint chief executive Jason Huljichsaid said.
North Rocks is about 4km from Parramatta’s CBD and 26km from Sydney’s CBD.
Centuria is one of the largest industrial landlords across Australasia with a $6-billion industrial portfolio comprising more than 160 assets.
Colliers’ Gavin Bishop and Sean Thomson represented Leda Holdings in the off-market sales process for the North Rocks facility.
