CIP acquires three assets, expands portfolio to over $3 billion
- CIP’s portfolio increases to over $3.0 billion, 66 high quality industrial properties1
- Acquired three industrial assets, off-market, worth $86.1 million, blended 5.0% initial yield, avg. 5.8 year WALE
- Builds on exposure to core infill landholdings in tightly held Melbourne & Sydney markets.
Centuria Industrial REIT (ASX:CIP), has secured a high-quality industrial portfolio worth $86.1 million on a blended initial yield of 5.0% and a portfolio Weighted Average Lease Expiry (WALE) of 5.8 years. All properties are 100% occupied and secured off-market.
Following settlement of the acquisitions, CIP’s portfolio will increase to 66 properties worth over $3.0 billion1.
The three eastern seaboard industrial assets are within core Sydney and Melbourne industrial precincts where CIP has existing assets, building on the REIT’s strategic landholdings while providing value-add opportunities to leverage the sites’ potential.
The portfolio acquisitions include:
|Properties||State||Purchase Price ($m)||Initial Yield (%)||WALE (Years)||Site Area (Ha)||Tenant|
|110 Northcorp Boulevard, Broadmeadows||VIC||37.1||4.9||11.4||3.1||Manufacturing|
|40 Scanlon Drive, Epping||VIC||15.5||5.5||2.8||1.8||Distribution Centre|
|160 Newton Road, Wetherill Park||NSW||33.5||4.9||0.9||2.2||Distribution Centre|
|Total/ weighted average||86.1||5.0||5.8||7.1|
Jesse Curtis, CIP Fund Manager, said, “The three assets were secured off-market and continue to grow CIP’s exposure to the highly-sought after and tightly held infill industrial markets of Melbourne and Sydney. The portfolio provides a rare mixture of short WALE assets, providing the opportunity to add value and take advantage of low vacancy rates through strategic leasing, while also adding a core long WALE asset.”
CIP has increased its North Melbourne landholdings with the acquisition of 40 Scanlon Drive, Epping and 110 Northcorp Boulevard, Broadmeadows. These acquisitions add to the six existing industrial properties within the area, creating a collective value of $219 million. The 40 Scanlon Drive, Epping acquisition includes a 9,371 sqm high-quality modern distribution centre within a core North Melbourne industrial precinct, 20km from the CBD. It is fully leased to two tenants: removalists, Grace Australia Pty Ltd (GCP Applied Technologies), and tortilla producer, Gruma Oceania Pty Ltd (Mission Foods).
110 Northcorp Boulevard, Broadmeadows, is a 15,704 sqm facility 100% leased to Rollease Acmeda, a global engineering, manufacturing and distributor of window coverings systems. It has an 11.4 year WALE and was secured on a 4.9% initial yield.
The acquisition of 160 Newton Road, Wetherill Park, is a 13,233 sqm distribution centre within a 2.2ha site, located in a key infill outer central west Sydney industrial precinct characterised by limited land supply and vacancy rates of less than 1.0%. The acquisition adds to CIP’s presence within Wetherill Park where it already owns 74 Newton Road.
Mr Curtis added, “CIP’s strategy is to secure quality industrial assets within key metropolitan locations and this portfolio transaction is in keeping with this direction. These acquisitions continue to build on our strong track record of identifying value and providing value-add opportunities through repositioning and active leasing to deliver reliable income returns and capital growth to our unitholders.”
The portfolio transaction will be funded through existing debt facilities.
CIP is Australia’s largest domestic pure-play industrial REIT listed on the ASX. It benefits from a strong portfolio occupancy of 98.8% and portfolio WALE of 9.7 years2.
1 Includes acquisitions exchanged but not yet settled: 29 Penelope Crescent, Arndell Park, NSW, 95-105 South Gippsland Highway, Dandenong South VIC
2 By income. As at 31 March 2021