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Centuria acquires Perth industrial facility

Final investment for the c.$100m high conviction wholesale fund

  • Canning Vale industrial asset secured for c.$39m1, Perth’s largest industrial transaction in 15 months
  • Fourth asset in unlisted Centuria Select Opportunities Fund; dual warehouse facility, value-add opportunity
  • Fund’s value-add strategies achieved +13% valuation uplift within 12 months
  • Fund targeting 15% IRR2

Australasian real estate funds manager, Centuria Capital Group (ASX: CNI or “Centuria”), has completed the deployment of capital raised for the high conviction wholesale fund, Centuria Select Opportunities Fund (CSOF), with the final acquisition of a Canning Vale WA industrial facility for c.$38.6 million1.

The acquisition is the largest industrial transaction by value in Perth since December 2023 and it’s the only institutional-grade asset in Perth to be marketed during the past 24 months.

Located at 7-11 & 25-27 Gauge Circuit, Canning Vale WA, the facility provides two, high-quality freestanding warehouses totalling c.17,900 sqm3 within a c.4 ha site, providing a low 50% site coverage. The asset is 100% leased to AAA Trailers and Australian Electoral Commission (AEC), providing a 2.5-year WALE4.

Jesse Curtis, Centuria Head of Funds Management, said, “Centuria is pleased to secure our fifth Canning Vale asset – a market that continues to benefit from a significant supply-demand imbalance and exceptional rental growth. In fact, Perth has experienced the strongest industrial rental growth of all national markets in 20245 due to extremely limited vacancy. With limited new supply coming to market, and an expanding local population, we believe these positive tailwinds will persist in the medium term.

“The Gauge Circuit acquisition is consistent with CSOF’s high conviction mandate, focused on securing value-add real estate opportunities. Each CSOF acquisition benefits from a low WALE, low site coverage, and were secured with below market rental values. The upside is that these properties are located in tightly held urban infill markets, which provide potential to capture significant positive rental revisions and redevelopment optionality.”

Centuria raised funds from its wholesale investor network in late 2023 and, during a 15-month deployment window, it has now secured its fourth asset bringing the CSOF portfolio value to c.$100million with a 3.1-year WALE6 and 100% occupancy.

All CSOF assets are positioned in high-demand urban infill markets that are distinguished by low vacancy rates between 1.2% to 2.7%7. Each market also benefits from proximity to 1.3 million-1.5 million households within an hour’s drive, which are compelling leasing fundamentals.

Since the capital deployment period commenced in March 2024, Centuria has executed on its value-add strategy resulting in a +13% valuation uplift across the three existing properties within the portfolio.

CSOF’s initial five-year fund term commences from April 2025, targeting a 15% Internal Rate of Return (IRR)2.

Mr Curtis concluded, “Already Centuria’s active inhouse property team has demonstrated its ability to deliver on value-add strategies before the Fund term has commenced. We have a strong track record across leasing, repositioning, refurbishment and development, which we intend to exercise further to the benefit of our investors. The portfolio we’ve secured for this high conviction, total return fund also speak to the strength of our inhouse transactions team and its ability to source and secure compelling investment opportunities.”

The Gauge Circuit warehouses feature 10m internal clearance, ESFR sprinklers, 50m hardstand, large awnings and corporate office accommodation. Canning Vale is a core industrial market located 22km south of the Perth CBD. The Gauge Circuit warehouses are in close proximity to the Jandakot Airport and major arterials including Roe Highway and Kwinana Freeway.

Centuria is an ASX-200 listed real estate manager with a track record exceeding 25 years and it manages a $6.0 billion industrial platform8 with total AUM of over $20 billion.

The Canning Value property was sold via Colliers’ Gavin Bishop and Sean Thomson.

  1. Represents 100% of the purchase price, with Centuria Select Opportunities Fund (CSOF) acquiring a 70% interest and the remaining ownership retained by another Centuria-managed fund.
  2. Internal Rate of Return (IRR) net of fees. The rate specified is a target only and is not a forecast. This target is the total return outcome of the Fund at the end of the term of the Fund. The IRR target will be a composite return based upon the returns of the underlying investments. The achievement of this target is subject to best endeavours and is not a guarantee of future performance. An investment in the Fund is subject to risks, as detailed in the Information Memorandum of the Fund.
  3. Size measured by Gross Lettable Area (GLA).
  4. Weighted Average Lease Expiry (WALE) (by income) as at April 2025.
  5. CBRE Industrial Logistics Q4 2024 research.
  6. Pro forma portfolio WALE across CSOF’s four assets.
  7. Source: CBRE as at December 2024.
  8. Industrial portfolio as at 31 December 2024.

 

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