CIP Acquires Cargo Park, 1 International Drive, Westmeadows, VIC
Centuria Industrial REIT (CIP), has acquired a $42.0m1 property at Cargo Park, 1 International Drive, Westmeadows, VIC. The property is strategically located in immediate proximity to Melbourne Airport and is considered the pre-eminent unit estate servicing the precinct.
The property is a 25,866sqm multi-tenanted industrial estate located on a prominent 5.6ha freehold site with significant exposure to the Tullamarine Freeway. The estate has recently benefited from a $7.1m refurbishment program, is 87% occupied2 with a WALE of 2.3 years and has been acquired on a capitalisation rate of 7.0%3.
CIP Fund Manager, Mr Ross Lees commented “The acquisition of Cargo Park is consistent with our strategy to invest in fit-for-purpose, quality assets in established strategic locations. Cargo Park will add to our existing scale in the Victorian industrial sector, providing the opportunity to actively add value through our hands on, relationship-based leasing approach, which has resulted in over 90,000sqm of new leases and renewals in CIP’s Victorian portfolio over the past 18 months.
“This transaction is testament to Centuria’s capability to identify and deliver quality properties in a competitive market.”
The transaction will increase CIP’s portfolio to 39 assets with a value of $1.06bn4. Settlement is expected to occur in November 2018 and will be funded through existing debt facilities.
1 Purchase Price includes a rental guarantee of up to $0.45m that may be applied to current vacancies. The Purchase price also includes an amount of $0.5m that is held in retention and will be returned to the Purchaser if certain conditions are not satisfied post settlement.
2 Before application of rental guarantee proceeds
3 Capitalisation rate is based on independent valuation undertaken by JLL.
4 As at 30 June 2018 with pro forma adjustments to reflect the sale of 39-45 Wedgewood Drive, Hallam, VIC, the acquisition of 616 Boundary Road, Richlands, QLD and Cargo Park, VIC