Centuria’s industrial divestment to deliver strong returns
- Adjoining Brookvale NSW industrial assets to be divested for c.$84 million, 106% above purchase price
- Held in 11 year unlisted closed ended trust
Capitalising on the strong industrial market tailwinds, Centuria Capital Group has successfully exchanged conditional contracts to divest two adjoining industrial facilities located at 114 and 120 Old Pittwater Road, Brookvale NSW, which is anticipated to deliver a forecast 13.8% Internal Rate of Return (IRR)1 to the assets’ closed ended fund investors.
The Brookvale assets were acquired in 2012 for $40.5 million and exchanged in July 2023 for $83.64 million, providing a 106% uplift on the initial purchase price. The assets underpinned the Pittwater Road Trust (PRT).
The assets provide a total, consolidated 41,870sqm landholding within the strong urban infill North Sydney market with excellent connectivity to Sydney’s CBD (16km) and access to 971,690 households within a 60 minute drive2.
Ross Lees, Centuria Head of Funds Management, commented, “These well positioned, strategic landholdings were acquired in July 2012 and have delivered compelling returns to our investors throughout the past 11 years. With strong market tailwinds, we believe now is an opportune time for divestment and to capitalise on the PRT’s full fruition. We will continue to provide our unlisted investors across Australia with further well positioned industrial investment opportunities in the future.”
In total, the divestment incorporates three warehouses ranging between 5,200sqm and 8,600sqm, leased to six tenants, across two storeys with 538 car parks. Well known tenants included the Woolworths Group, Fujifilm, Services NSW and local library supplier, James Bennett.
Settlement is anticipated in late September, subject to completion of all conditions precedent.
Colliers International’s Gavin Bishop and Sean Thomson, together with CBRE’s Jason Edge, Jack Pershouse and Chris O’Brien were the appointed sales agents for the Brookvale transaction.
Centuria manages circa $6 billion3 of industrial assets throughout Australia and New Zealand on behalf of unlisted, listed and institutional investors.
1. IRR is calculated based on the contracted sale prices and distributions paid annualised over the life of the fund. The IRR figure includes performance or sales fees payable to the trustee but excludes capital works that may be incurred prior to settlement.
2. According to SA1 Property data resource
3. As at 30 June 2023
Centuria Capital Group secures 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).
CNI has reported solid FY23 results supported by strong funds growth across its alternative unlisted real estate sectors, which lifted Group AUM to $21 billion, and increased statutory NPAT.