$50m raised from HNWs, secures seed investment

  • Centuria Select Opportunities Fund targets 15% IRR1, five-year term after 15-month capital deployment
  • Co-investment strategy targeting opportunities across diverse property and real estate finance sectors
  • Seed investment worth $20.6m: under-rented industrial facility in Keysborough Vic.

Australasian real estate fund manager, Centuria Capital Group (ASX: CNI or ‘Centuria’), has raised $50 million of equity from its Australian wholesale investor network to capitalise on non-core divestment opportunities for its unlisted Centuria Select Opportunities Fund (CSOF or Fund).

CSOF will execute a counter-cyclical strategy to access opportunities across diverse property and real estate finance sectors. It aims to deploy its capital across the coming 15-month period and is targeting a 15% Internal Rate of Return (IRR)1 across a five-year term.

The Fund’s seed investment relates to a $20.6 million industrial logistics facility in southeast Melbourne’s industrial heartland of Keysborough where vacancy rates are less than one per cent2.

Jason Huljich, Centuria Joint CEO, commented, “We are looking at high-quality assets that can provide value-add opportunities such as positive rental reversions, as is the case for the Keysborough investment. We are also looking at industries with strong tailwinds that lend themselves to supply-demand imbalances and growth opportunities.

“CSOF is positioned to capitalise on attractive medium term market opportunities for Centuria’s deep network of wholesale unlisted investors. The Fund is also targeting direct and indirect investments that lend themselves to the capabilities of our in-house real estate team, such as leasing, repositioning, refurbishment and development, as well as real estate credit opportunities. Centuria is co-investing alongside our wholesale investors because we believe in this high conviction investment strategy.”

Located at 93-103 Pacific Drive, Keysborough Vic, the modern logistics facility was built in 2017, providing an 8,756 sqm3 warehouse with a low 45% site coverage. The asset benefits from dual access via Perry Road and Pacific Drive, up to 10.9-metre clearance, four on-grade and two recessed docks and a c.1,500 sqm hardstand.

Its short 2.0-year WALE provides a value-add opportunity to generate positive rent reversions in line with market asking prices today. The property also provides access to 1.5 million households within an hour’s drive time4.

Keysborough is positioned 30km southeast of Melbourne’s CBD with proximity to major road arterials including Greens Road and the Eastlink Freeway.

Centuria is an ASX-200 listed real estate manager with a track record exceeding 25 years, and manages a $6.0 billion industrial platform5.

CBRE’s Andrew Bell and Chris O’Brien represented the vendor.


1. Internal Rate of Return (IRR) net of fees. The rate specified is a target only and is not a forecast. This target is the total return outcome of the Fund at the end of the term of the Fund.  The IRR target will be a composite return based upon the returns of the underlying investments. The achievement of this target is subject to best endeavours and is not a guarantee of future performance. An investment in the Fund is subject to risks, as detailed in the Information Memorandum of the Fund.
2. Source: CBRE
3. GLA
4. Source: SA1 data
5. As at 31 December 2023

Resource use and circularity have been identified as global megatrends and issues from the World Green Building Council, reflecting the importance of waste management.

The climate-related reporting landscape is rapidly evolving both in Australia and globally. Scope 3 emission reporting, which includes carbon emissions from operational waste, is becoming increasingly important for both tenants and landlords.

The primary focus for reducing carbon emissions has typically been through energy and water efficiencies. While Centuria remains committed to improving our performance in these areas, we are now also focussing on actively managing waste streams through BinTracker Premium to reduce waste going to landfill and collecting waste data collection, which will assist with future scope 3 climate-related reporting obligations.

Bintracker dashboard

One of the significant challenges with waste management is the education and coordination needed to align cleaning contractors, internal staff and tenants to ensure that all parties are working collaboratively toward the desired outcome of reduced landfill.

In September 2022, Centuria’s Queensland team took the initiative to analyse various solutions to control, recycle or upscale waste matter within office buildings. At the heart of the issue was the limited waste stream options provided for tenants.

The new BinTracker Premium system provides office buildings with four waste streams including general waste, mixed recyclables, paper recyclables and organics (compost). This involved provision of new, separate bins deployed to each tenant in addition to:

  • Tenant engagement and training
  • New scales at each property to effectively measure and record the waste volume per stream, per tenancy
  • Facility manager training and advice (especially regarding the size of central bins and frequency of collections).
  • Refining collections per waste stream, which has a cost saving potential as general waste collection is more costly than other streams
  • Site assessments for bespoke needs.
  • Bintracker Premium mobile app, which provides transparent monitoring of bins and bags with weight data recorded and automatically reported.

Bintracker Premium is now in the process of being implemented across Centuria’s entire Australia office portfolio, consisting of c.70 buildings and almost 1,000 tenants. The new waste management system is being rolled out between February to June 2024.

To date, 37 buildings across Centuria’s office portfolio currently use Bintracker Premium and across these buildings, between 24 May and 29 January 2024, the system has measured:

  • a 40.4% recycling rate
  • c.300 tonnes redirect from general waste.

The new waste management system has also provided these buildings and their tenants with ongoing cost savings through a revised procurement strategy informed by enhanced data analytics. Most importantly, the thorough and meaningful data shared with tenants assist them with reporting their ESG metrics.

Centuria is now also looking to roll the new waste management system and benefits out across its Industrial platform.

Harnessing tailwinds from real estate finance, agriculture and industrial sectors

  • Focused on outperforming industrial sector and expanding alternatives: real estate finance, agriculture
  • Increased development pipeline to $2.3bn, concentrated in supply constrained markets
  • $2.1bn institutional capital bolstered by $500m Starwood industrial mandate
  • HY24 delivered operating earnings per security (OEPS)1of 6.1cps, Distribution per security (DPS) of 5.0cps
  • Reaffirmed FY24 OEPS guidance of 11.5-12.0cps, DPS guidance of 10.0cps

Australasian real estate funds manager, Centuria Capital Group (ASX: CNI or “Centuria”), announced its interim results for the 2024 Financial Year, which showed the Group’s resilience against a backdrop of economic uncertainty, high interest rates and fewer transactions.

Centuria’s assets under management (AUM) expanded to $21.1 billion2, largely driven by growth within its real estate finance business, Centuria Bass Capital ($1.58 billion AUM, +41% yoy); industrial platform ($5.92 billion); and focus on agricultural real estate ($0.55 billion, +31% yoy).

John McBain, Centuria Joint CEO, said, “Centuria is proud of the diversity which has been built into the Group over the past years. The need for this diversity has been highlighted by recent pandemic and financial market disruptions. The entire management team has worked diligently to expand into the financing and agriculture sectors and this has been a major factor in our ability to forecast reliable earnings to our securityholders.

“We’ve received strong interest from wholesale investors for our finance funds, which benefit from upward interest rate movements and provide short-term investment periods. These unlisted funds have become attractive, counter-cyclical investment options.”

Centuria has also identified a $2.3 billion development pipeline to capitalise on strong supply-demand imbalances within select commercial markets. Significantly, $1.0 billion is earmarked for the outperforming industrial sector, which benefits from constrained supply, outsized rental growth and continued high occupier demand.

The Group further captured industrial investment appetite with the $500 million Last Mile Logistics Partnership (LMLP) from US private investment firm, Starwood Capital, of which $147 million has been deployed.

Jason Huljich, Centuria Joint CEO, said, “Centuria continued to harness tailwinds from the outperforming industrial real estate sector by securing the Starwood mandate, in addition to CIP identifying a significant development pipeline, which aims to capitalise on historically low domestic vacancy rates and limited supply within urban infill industrial markets.

“Alternative real estate markets, namely real estate finance and agriculture, provided strong growth throughout the period, benefiting from unlisted wholesale and retail investor appetite for emerging market investment opportunities. We believe these sectors, in particular, will continue to expand in the near to mid-term driven by constrained lending criteria from traditional finance markets and Australia’s expanding population increasing demand for fresh produce.”

During the period, Centuria’s unlisted platform generated $0.3 billion of capital raising inflows. Additionally, $0.3 billion of gross development projects were completed during HY24.

As at 31 December 2023, Centuria managed c.417 properties3 and 2,450 tenant customers3. Its real estate platform provides an average 96.2% occupancy3, 5.7-year WALE3 and an average capitalisation rate of 6.03%3.

Centuria’s Group Operating Profit After Tax was $49.4 million4, resulting in OEPS1 of 6.1 cents per security (cps) and an interim distribution of 5.0cps was declared. Total operating revenues of $149.6 million reflect restrained transaction volumes. Net asset value (NAV) increased to $1.78 per security5,6, through unrealised fair value gains from the Group’s co-investment stakes.

Balance sheet flexibility strengthened through a $50 million extension of Centuria’s revolving loan note to FY27. Centuria benefits from $255 million of cash and undrawn debt available at HY24 end and the realisation of $187 million in cash from the sale and recycling of balance sheet assets, which contributed to operating gearing7 of 13.9%.

Mr McBain and Mr Huljich concluded, “Australia’s growing population, driven by surging migration, provides strong tailwinds across the real estate sectors Centuria is exposed to. This extends to traditional sectors including decentralised offices, large format retail and daily needs retail as well as industrial, agriculture, healthcare and real estate finance.

“Centuria maintains a conservative approach to capital management with substantial cash and undrawn debt, which enables us to support the continued growth of our business units. The Group remains focused on creating long-term value for our securityholders.”

Centuria reaffirms its FY24 operating EPS guidance of 11.5 – 12.0 cents per security and DPS guidance of 10.0 cents per security.


1. Operating EPS is calculated based on the Operating NPAT of the Group divided by the weighted average number of securities.
2. AUM includes assets exchanged to be settled, cash and other assets.
3. Aggregated across all funds managed by Centuria and is not representative of any single fund. Excludes land, Development assets, US syndicates, Centuria Bass Credit, assets exchanged yet to be settled.
4. Operating NPAT of the Group comprises of the results of all operating segments and excludes non-operating items such as transaction costs, mark to market movements on property and derivative financial instruments which are the results of Benefit Funds, Controlled Property Funds and share of equity accounted net.
5. Number of securities on issue 31 December 2023: 799,796,794 (at 31 December 2022: 792,787,120).
6. Increase in net asset value per security is primarily attributable to continued profitability and the unrealised fair valuation gains on the Group’s co-investment stakes, less borrowing, payable, option.
7. Gearing ratio is calculated based on (operating borrowings less operating cash) divided by (operating total assets less operating cash).

Metro market positive net absorption outperforms Sydney/Melbourne CBDs

  • 28,659sqm leased across 23 deals, (9.7% of portfolio)1; c.67% of portfolio leased since COVID hit
  • Maintained high 96.2%2 occupancy, 4.4-year WALE3; 92% portfolio weighted to metropolitan/fringe
  • Reduced future metro office supply, coupled with forecast population growth, provides mid-term tailwinds
  • Reaffirmed FY24 FFO guidance4 of 13.8cpu, distribution guidance of 12.0cpu4

Australia’s largest listed pure-play office fund, Centuria Office REIT (ASX:COF), has delivered solid interim results for the 2024 financial year, with strong leasing transactions demonstrating the continued resilience of metropolitan markets over Sydney and Melbourne CBDs.

Approximately 92% of COF’s portfolio is exposed to metropolitan, fringe and near-city office markets, that is, markets outside the Sydney and Melbourne CBDs. COF’s portfolio consists of 22 modern office buildings worth $2.1 billion5.

During HY24, COF leased 28,659sqm across 23 transactions, representing (9.7% of portfolio NLA)1. Significantly, since 2020 when the COVID pandemic impacted the office sector, COF has leased more than c.67% of its portfolio, totalling more than 197,000sqm.

Grant Nichols, COF Fund Manager and Centuria Head of Office said, “Four years on from the start of COVID’s impact and, despite flexible working arrangements having become somewhat ubiquitous, many Australian office markets experienced positive net absorption throughout 2023. This suggests many tenants have already right-sized and tenant demand may be finding an equilibrium.

“Many tenants have not decreased their footprint and the office leasing distress predicted by some market speculators has not materialised, particularly in the markets COF is exposed to6. In fact, metropolitan office demand continues to materially outstrip the Sydney and Melbourne CBDs. In particular, the Brisbane fringe market incurred the strongest net absorption in 2023 and has limited pending supply. COF has substantial exposure to this market with a 20% portfolio weighting.”

During the half, COF maintained high occupancy exceeding 96%2 and its portfolio WALE increased to 4.4 years3.

COF delivered Funds From Operation (FFO) of $41.8 million or 7.0 cents per unit (cpu)7 and distributions of 6.0cpu, both in line with FY24 guidance4. The latter provides a distribution yield of 9.6%8.

Ross Lees, Centuria Head of Funds Management, added, “COF is providing unitholders with a well-priced investment, considering its high distribution yield. COF’s portfolio construction, comprised of modern, high-quality assets within metropolitan markets, is differentiated by amenity, affordability and connectivity. These unique attributes capitalise on the continued bifurcation between Prime grade stock and secondary assets.”

Mr Nichols concluded, “Looking forward, we expect future office supply to materially reduce over the medium term. Development feasibilities have been impaired due to rising construction costs, increased finance costs and softening capital market transactions, pushing economic rents significantly above prevailing rents in the majority of Australian office markets. This is likely to provide strong future tailwinds for the markets COF is exposed to, especially in light of forecast population and white collar employment growth.”

During the period, COF continued to maintain liquidity with $88.2 million pro forma debt facility headroom9, a 2.7-year weighted average debt expiry and has no debt expiring until FY26. As at 31 December 2023, 76% of debt is hedged.

Selective divestment of two non-core assets during the period improved overall portfolio quality, positioning COF to take advantage of the recovering conditions within decentralised office markets.

COF also addressed its most significant FY25 lease expiry, relating to its largest tenant (c.5% portfolio NLA). The Commonwealth Government committed to a further 10-year term at 235 William Street, Northbridge, WA.

COF reaffirmed its FY24 FFO guidance of 13.8 cpu4 and distribution guidance of 12.0 cpu4 (distribution yield of 9.6%9), which are expected to be paid in equal quarterly instalments.

COF HY24 results highlights

Centuria Office REIT Fund Manager, Grant Nichols discusses the Fund’s HY24 highlights.


  1. By Net Lettable Area (NLA), including Heads of Agreement and executed leases
  2. Occupancy by gross income as at 31 December 2023
  3. Weighted Average Lease Expiry (WALE) by gross income as at 31 December 2023
  4. Guidance remains subject to unforeseen circumstances and material changes in operating conditions
  5. Excludes the right of use asset
  6. JJL research 2023
  7. FFO is the Trust’s underlying and recurring earnings from its operations. This is calculated as the statutory net profit adjusted for certain non-cash and other items
  8. Based on COF closing unit price of $1.25 on 14 February 2024
  9. Headroom reflects undrawn debt (including a $1.5m bank guarantee held as security over the 46 Colin Street, West Perth WA ground lease)

51% re-leasing spreads1 achieved within HY24, driving strong FFO

  • FY24 earnings (FFO) guidance upgraded to 17.2cpu2
  • 51%1 re-leasing spreads achieved during HY24 across 108,821sqm3
  • $1.0bn development pipeline4 identified over the next five years

Australia’s largest listed pure-play industrial REIT, Centuria Industrial REIT (ASX:CIP), today announced its half year results for the 2024 financial year, which are underscored by upgraded Funds From Operation (FFO) guidance of 17.2 cents per unit (cpu)2 from 17.0cpu.

Strong income growth underpinned CIP’s FFO guidance upgrade, also known as earnings guidance, which is largely credited to achieving significant average re-leasing spreads of 51%. The HY24 re-leasing spreads eclipse those secured throughout FY23, which averaged 30%.

During the period, CIP leased 108,821sqm3 across 17 transactions within its portfolio of 88 assets valued at $3.8 billion5. The strong leasing activity equates to 8% of total portfolio Gross Lettable Area (GLA). In total, CIP’s portfolio provides a 7.5-year Weighted Average Lease Expiry (WALE) and 97.2% occupancy6.

The REIT also delivered 57,722sqm of new industrial facilities across two sites in Campbellfield VIC and Canning Vale WA. These new facilities were c.44% pre-committed prior to practical completion (PC) and achieved a c.47% rental premium7.

Significantly, CIP has identified a $1.0 billion4 future development pipeline across the next five years to further capture strong tailwinds across urban infill industrial markets. The pipeline focuses on key growth sub-markets including multi-level industrial facilities, data centres, distribution centres and cold storage/food logistics.

Jesse Curtis, CIP Fund Manager and Centuria Head of Industrial, said, “CIP enters the second half of FY24 in a strong position having executed outsized re-leasing spreads and identified an executable development pipeline. CIP has a strong track record in delivering high-quality infill industrial developments and further activates a development pipeline, unlocking embedded value while providing modern, sustainable industrial assets.”

Examples of projects within CIP’s development pipeline include a 58,000sqm multi-level industrial facility in Wetherill Park NSW; a 7,500sqm industrial brownfield development in Hallam VIC; and a 22,000sqm industrial development in Direk SA .

Also during the period, CIP divested two assets for a combined $70 million8 with both trading in line with book values as at 30 June 2023. Proceeds were used to reduce debt and strengthen CIP’s balance sheet.

CIP maintained a healthy balance sheet with gearing largely unchanged at 33.7%9 and maintains a staggered, diverse debt profile with no debt expiry until FY25.

Mr Curtis, continued, “Looking ahead, domestic urban infill industrial market vacancy remains tight despite wider industrial market vacancy marginally increasing. Tenant demand continues to be skewed towards infill markets as industrial users continue to prioritise proximity to a large population base.

“With limited new supply within these infill markets, rental growth is expected to be prolonged providing the opportunity for continued positive rental reversion from high re-leasing spreads. Additionally, CIP’s embedded development pipeline provides the optionality to unlock further value to take advantage of the mismatch between supply and demand and deliver value to unitholders.”

Ross Lees, Centuria Head of Funds Management, added, “CIP has had a longstanding differentiated strategy to build a portfolio of high-quality urban infill logistics assets. It is pleasing to see this long-term disciplined approach to portfolio construction, alongside an active approach to asset management, resulting in significant rental growth being delivered for unitholders.”

In addition to upgraded FY24 FFO guidance, CIP reaffirmed its distribution guidance of 16.0cpu, paid in equal quarterly instalments.


  1. On a net rent basis compared to prior passing rents
  2. Guidance upgraded from 17.0 cents per unit (cpu). Guidance remains subject to unforeseen circumstances and material changes in operating conditions, and assumes the average floating rate is based on a BBSW rate of 4.6% over FY24.
  3. Includes heads of agreement (HOA)
  4. Estimated value on completion. Includes land, development cost and estimated development upside
  5. At CIP ownership share of joint venture assets
  6. By income
  7. Rental premium secured against underwritten rental values
  8. Before transaction costs
  9. Gearing is defined as total interest bearing liabilities divided by total assets

Within the past 12 months, Centuria has implemented the use of a new vendor management software system, Rapid Global, to ensure all onsite building suppliers, contractors and third-party personnel (‘vendors’) have valid documentation to conduct work on Centuria’s real estate assets. It ensures mandatory and regulatory obligations are met including compliance with the supplier’s Building Services Agreement and associated modern slavery requirements. Importantly, the system ensures that the authorised, qualified worker appointed is the same individual(s) conducting works onsite.

Rapid Global retains each vendor’s appropriate insurances, qualifications, workplace health and safety (WHS) requirements and modern slavery policies. Should any of the aforementioned documentation not be submitted within an appropriate timeframe, the Rapid Global system alerts Centuria’s property services team with a non-compliance notification. Vendors will be prohibited from entering a site until all documentation is provided and authenticated.

Additionally, Rapid Global provides a digital platform at each site for vendors to sign-in and register prior to commencing works. This prevents unregistered or untraceable workers from conducting work on Centuria properties and creates better transparency.

A secondary purpose for the onsite digital platform is to track who is onsite and for how long through a sign-in and check-out process. If a worker has not checked out within a nominated timeframe, the site manager is notified. This allows the site manager to investigate if a worker has forgotten to check-out but also flags if a potential incident may have occurred and a worker requires assistance.

Centuria Agriculture Fund grows to $351m

  • 12 ha protected cropping including glasshouses and greenhouses
  • Operated by renowned SA hydroponic vegetable producer, P’Petual Holdings
  • Fourth asset within Centuria Agriculture Fund’s (CAF) portfolio; increased to $351m, 17-year WALE1

Australasian real estate fund manager, Centuria Capital Group (ASX:CNI or “Centuria”), has acquired a $21.5 million greenhouse and glasshouse facility within the Adelaide Plains, South Australia, for its open-ended unlisted Centuria Agriculture Fund (CAF).

The asset, located at 234 Carmelo Road, Riverlea Park SA, provides 12 hectares of protected cropping within a 59-hectare land parcel. This includes six hectares of glasshouses and six hectares of double skinned plastic greenhouses. These facilities have the capacity to produce approximately 1,488 tonnes of tomatoes, 136 tonnes of cucumbers, 517 tonnes of eggplants and 43 tonnes of capsicums per annum2.

Additionally, the asset includes large packing sheds along with onsite energy, fertigation and reverse osmosis infrastructure as well as a c.40ML3 dam and 205ML3 bore water licences.

The asset continues to be operated by P’Petual Holdings. It provides strong lease covenants including a 10-year triple-net lease with annual rent escalations. P’Petual is one of South Australia’s largest vegetable growers of tomato, mini-cucumber, eggplant and jalapeno/mini capsicum varieties.

The acquisition expands CAF’s portfolio to four assets worth $351 million with a 17-year WALE1 and 100% occupancy4.

Jason Huljich, Centuria Joint CEO, said “The Adelaide Plains acquisition is aligned with CAF’s investment strategy to acquire high-quality agricultural assets, leased to reputable operators with strong ESG credentials and in higher revenue producing sectors such as protected cropping.”

Andrew Tout, Centuria Head of Agriculture, added, “Centuria is excited about this recent acquisition, which provides an exceptional opportunity for P’Petual to scale-up and implement operational efficiencies. It is another great example of Centuria partnering and collaborating with seasoned agricultural innovators.”

The asset’s sustainability credentials extend to robust water management through recycled rainwater and surplus water, recycling carbon emissions, and integrated pest management via the introduction of “good insects” into the greenhouse facilities to combat unwanted insects.

The acquisition also includes a Development Application (DA) approval for an additional four-hectare glasshouse, providing a value-add opportunity to further enhance CAF’s size and footprint in the agricultural real estate sector.

234 Carmelo Road is located approximately 38 kilometres north of the Adelaide CBD near the town of Virginia, in an area known as the food bowl of South Australia due to its extensive horticultural production. It is seven kilometres inland from the St Vincent Gulf.

CAF was launched at the commencement of FY23 as a new alternative fund vehicle for Centuria and its growth has been extremely rapid, proving popular with both retail and private bank investment clients.

Since inception, CAF has increased its distribution yield from 5.25 cpu to 5.50cpu5 while providing monthly distributions6, daily unit pricing and a five-year liquidity event. It has a minimum entry investment of $10,000.


  1. Weighted Average Lease Expiry (WALE) by income as at 20 December 2023 (16.6 years)
  2. Based on P’Petual’ s 2021 total production records
  3. Mega Litre (ML), representing a million litres
  4. Occupancy by income as at 20 December 2023
  5. Monthly distribution rate of 5.50cpu (as at November 2023) increased from April 2023 annualised. The monthly distribution rate is updated each month and is not a forecast. Past performance is not a reliable indicator of future performance. For full historical performance please visit centuria.com.au/caf. The payment of distributions is not guaranteed and subject to the assumptions and risks in the PDS. Actual returns may differ from budgeted returns.
  6. Centuria Property Funds Limited intends to pay monthly distributions and will be subject to the terms set out in the PDS.

Fiat500e
Perth’s premium-grade sustainability-conscious office building, Exchange Tower, is taking a step beyond its 5.5 star NABERS energy rating by providing a complementary electric vehicle (EV) for its tenants to use during business hours (8:00am – 5:00pm, Monday to Friday).

In a bid to curb reliance on taxis and Ubers, a Fiat500e is provided on call for any tenant to use, without charge, during the workday. It’s also available after hours at a competitive rate.

The EV provides a hearty 275-300km before it needs to be recharged. When charging, it requires just 42 kWh of energy, which, when powered by the equivalent of 100% renewable energy, emits no carbon emissions. Centuria’s sustainability target is to have zero scope 2 emissions by 2035, with our portfolio being powered by the equivalent of 100% of its electricity from renewable sources.

Transport makes up approximately 19% of Australia’s emissions1 with passenger cars and light commercial vehicles contributing about 60% of the nation’s transport emissions and over 10% of Australia’s total emissions. Transport is projected to be Australia’s largest source of emissions by 2030. Therefore, reducing transport emissions through EVs that are powered by renewable energy is an essential step towards achieving Australia’s goal to be net zero emissions by 2050.

The Fiat500e is touted as saving 1-1.5 tonne of driven carbon dioxide emissions per annum.

This latest sustainability initiative adds to Exchange Tower’s long list of ESG credentials, including:

  • 5.5 star NABERS Energy Rating
  • 4.5 star NABERS Water Rating
  • 3.5 star NABERS Waste Rating
  • 2023 Water Corporation Platinum Waterwise Building, only the third building to be recognised as such since the program’s inception in 2014.

For more information about Exchange Tower, visit: www.exchangetower.com.au


1. Aus Gov National Electric Vehicle Strategy, 2023 (https://www.dcceew.gov.au/sites/default/files/documents/national-electric-vehicle-strategy.pdf )

$71m industrial acquisition for Last Mile Logistics Partnership

  • Off-market $70.6m North Rocks NSW industrial facility acquired for $500m Starwood mandate.
  • Acquisition provides near term rental reversion upside within key infill market.
  • Vendor, Leda Holdings, will recycle capital for further investment opportunities.
  • LMLP benefits from $350m of latent capital available for deployment.

Australasian real estate fund manager, Centuria Capital Group (ASX: CNI or “Centuria”), has secured a $70.6 million industrial logistics facility in North Rocks, NSW, on behalf of US private investment firm, Starwood Capital’s, Last Mile Logistics Partnership (LMLP).

Centuria first announced the $500 million Starwood mandate in September 2023 with three seed assets totalling $76 million. This recent acquisition nearly doubles LMLP’s AUM to $147 million, with a strong pipeline of opportunities to deploy the mandate’s remaining $350 million of latent capital.

The acquisition, located at 19-21 Loyalty Road, North Rocks NSW, is a dual access, multi-tenanted industrial facility totalling 19,231sqm with a low site coverage of c.41%. It provides a 2.3-year WALE1 and 100% occupancy2.

North Rocks is approximately four kilometres from Parramatta’s CBD and 26 kilometres from Sydney’s CBD, providing proximity to c.1.5m households within one hour’s drive time3, making it an ideal infill industrial logistics asset.

The industrial asset was acquired from private property investment and development company, Leda Holdings.

Jason Huljich, Centuria Joint CEO, said, “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.”

Rob Ell, Leda Group Managing Director, said “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.”

The 19-21 Loyalty Road acquisition builds on more than $335 million of gross real estate activity Centuria has executed in FY24 year to date while adding to its $6.0 billion industrial portfolio.

Centuria is one of the largest industrial landlords across Australasia with more than 160 assets4.

Colliers’ Gavin Bishop and Sean Thomson represented the vendor throughout the sales process.


1. Weighted Average Lease Expiry (WALE) by income as at 21 September 2023.
2. Occupancy by income as at 21 September 2023.
3. Source: SA1 data.
4. As at 30 June 2023.

Joondalup House and 1060 Hay Street demonstrate strong ESG credentials

Centuria is pleased to confirm another two office assets located across Greater Perth recently received a 6 star National Australian Built Environment Rating System (NABERS) Energy rating, reflecting strong ESG credentials and the company’s focus on providing sustainable workplaces for its customer tenants.

The assets include 1060 Hay Street, West Perth, and Joondalup House, located at 8 Davidson Terrace. They join Prime House, which has maintained its 6 star NABERS energy rating since the building was opened in 2018.

1060 Hay Street has progressively increased its NABERS energy rating from a 5 star rating in 2021 through a series of improved operating practices and increased leasing activity, resulting in an 86% occupancy.

Joondalup House
1060 Hay Street Perth

 

Joondalup House also increased its NABERS energy rating from 5 stars, following the implementation of several energy efficiency initiatives including the installation of a renewable energy solar system in March 2023 as well as targeted mechanical upgrades.

Nick Hunt, Centuria General Manager WA, said, “Centuria is committed to sustainable practises that reduce our impact on the natural environment and positively contribute to the social welfare of the communities in which we operate. Earlier in 2023, the Group, along with its listed Real Estate Investment Trusts (REITs), announced measurable targets.

“Specifically, the WA Centuria Property Services team ensures our office assets are best placed for the future, which means targeting the highest possible NABERS energy rating appropriate for each property. To this end, most of our office buildings have tailored NABERS energy improvement plans that are currently being implemented. NABERS improvements and energy efficiency always remain at the forefront of our proactive asset management.”

Centuria Capital Group is targeting zero scope 2 emissions with 100% of its portfolio’s scope 2 electricity sourced from the equivalent of 100% renewable electricity by 2035 while Centuria’s listed REITs’ target is zero scope 2 emissions by 2028. The Group and Centuria Office REIT (ASX:COF) are also focused on eliminating gas and diesel in operations, where practicable, by 2035.

Where possible, Centuria’s WA office portfolio is examining solar system installations across suitable properties. Currently, five commercial assets are expected to receive solar installations adding another 420 kW of renewable energy to the portfolio.

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