31 August 2020

CIP expands portfolio: Acquiring two industrial assets

Centuria Property Funds No. 2 Limited (CPF2L), as Responsible Entity of Centuria Industrial REIT (ASX: CIP), has announced the acquisition of two industrial assets collectively worth $32.5m, with 100% occupancy and an average WALE of 8.0 years.

The acquisitions build on CIP’s strategy to acquire fit-for-purpose, high-quality industrial assets in key in-fill locations throughout Australia. Both assets expand CIP’s presence in core industrial markets, providing the addition of a prime industrial asset in Melbourne’s West and an opportunity to expand CIP’s value-add pipeline in a last-mile market in Brisbane.

Beacon Lightings’ purpose-built distribution facility in Derrimut, Victoria, is situated within West Melbourne’s Gilbertson Industrial Estate, comprising an 11,469sqm warehouse and office facility on a 2.0ha site. The asset was secured for $20m under a triple-net lease structure, representing an initial yield of 5.5% and a WALE of 8.0 years.

Breezeway Australia’s Queensland head office and manufacturing facility in Coorparoo, Brisbane, is 3.3km from the CBD in a key in-fill market, close to rail and major road arterials. The asset comprises 5,893sqm of GLA within a c.9,000sqm site. The site provides potential for value-add development over the medium to long-term, leveraging its suitability for last-mile users. The asset was secured for $12.5m with a WALE of 8.0 years and an initial yield of 6.7%.

These transactions add to the three-asset portfolio acquisition announced on 5 August 2020, anchored by the $416.7m Telstra Data Centre.

Jesse Curtis, CIP Fund Manager, said “We have commenced FY21 strongly with quality acquisitions that complement CIP’s portfolio, provide strong income streams and support opportunities to undertake active management initiatives across our asset base. We remain focused on increasing quality, scale and investor relevance as Australia’s largest domestic pure play industrial REIT.”