Centuria in largest industrial leasing deal of 2017

1 August 2017

Centuria Industrial REIT secures 83,000sqm AWH lease extension

Centuria Property Funds today announced two key leasing deals for its listed industrial trust, Centuria Industrial REIT (ASX: CIP). The trust has renewed leases with AWH, Australia’s largest wool-handling operation, for CIP’s existing asset at 310 Spearwood Avenue, Bibra Lake, WA (44,296sqm), and for the recently-acquired adjoining asset at Lot 14 Sudlow Road (39,485sqm)[1].

The term will come into efffect with the settlement of Lot 14 Sudlow Road in September. As the largest tenant in CIP’s portfolio, AWH occupies 11% of the trust’s gross leasable area (GLA)[2].

The deal caps off an active period since Centuria took control of CIP in January, demonstrating our active approach to management. The activity has helped stabilise and expand the portfolio, including increasing the size of the portfolio to $957m2, refinancing CIP’s entire bank debt facilities and leasing activity across 19% of the portfolio.

CIP Trust Manager, Ross Lees, said he is delighted to have secured Australia’s largest industrial leasing transaction for 2017:

“AWH is one of Australia’s leading logistics and warehousing specialists, occupying over 650,000sqm. AWH provides storage, handling, freight forwarding and inventory management services for import, export and domestic distribution, and services over 55% of the nation’s traded wools. This deal will extend AWH’s tenure by an average of 5.6 years across both properties, significantly reducing CIP’s FY20 lease expiry profile, which is great news for CIP investors.”

Mr Lees said that AWH was representative of the quality of tenants that CIP seeks to attract and retain.

“We are active managers and a relationship-based business. By maintaining close relationships with tenants and investors, we are aware of their needs and able to swiftly take advantage of market opportunities for the benefit of both,” he said.

[1]   CIP exchanged contracts for the acquisition of Lot 14 Sudlow Road on 29 June 2017 with settlement expected on 29 September 2017.
[2]   As at 31 December 2016 pro-forma adjustments to reflect the sale of 60 Marple Avenue, Villawood and the purchase of 207 Browns Road, Noble Park and Lot 14 Sudlow Road, Bibra Lake.