Centuria has completed Perth’s largest industrial transaction in more than a year, acquiring two warehouses for $39 million as it continues to target a location 22km south of the CBD.
The Canning Vale acquisition was the biggest transaction by value since December of 2023.
The property was the only institutional-grade asset to be marketed in Perth during the past two years.
The two warehouses, totalling 17,900sq m, cover half of a 4ha site at 7-11 and 25-27 Gauge Circuit. They have been added to the Centuria Select Opportunities Fund.
The asset is 100 per cent leased to AAA Trailers and the Australian Electoral Commission, providing a 2.5-year weighted average lease expiry.
Centuria head of funds management Jesse Curtis said the acquisition was consistent with the fund’s high conviction mandate that focused on securing value-add opportunities.
“Canning Vale ... continues to benefit from a significant supply-demand imbalance and exceptional rental growth,” Curtis said.
“The upside is that these properties are located in tightly held urban infill markets, which provide potential to capture significant positive rental revisions and redevelopment optionality.
“In fact, Perth has experienced the strongest industrial rental growth of all national markets in 2024 due to extremely limited vacancy.
“With limited new supply coming to market, and an expanding local population, we believe these positive tailwinds will persist in the medium term.”
Since the capital deployment period started a year ago the company has gained a 13 per cent valuation uplift across the three existing properties within the portfolio.
The ASX-200 listed real estate manager manages a $6-billion industrial platform and has total assets under management of more than $20 billion.
