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Centuria doubles Starwood Fund’s AUM to $147m

$71m industrial acquisition for Last Mile Logistics Partnership

  • Off-market $70.6m North Rocks NSW industrial facility acquired for $500m Starwood mandate.
  • Acquisition provides near term rental reversion upside within key infill market.
  • Vendor, Leda Holdings, will recycle capital for further investment opportunities.
  • LMLP benefits from $350m of latent capital available for deployment.

Australasian real estate fund manager, Centuria Capital Group (ASX: CNI or “Centuria”), has secured 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).

Centuria first announced the $500 million Starwood mandate in September 2023 with three seed assets totalling $76 million. This recent acquisition nearly doubles LMLP’s AUM to $147 million, with a strong pipeline of opportunities to deploy the mandate’s remaining $350 million of latent capital.

The acquisition, located at 19-21 Loyalty Road, North Rocks NSW, is a dual access, multi-tenanted industrial facility totalling 19,231sqm with a low site coverage of c.41%. It provides a 2.3-year WALE1 and 100% occupancy2.

North Rocks is approximately four kilometres from Parramatta’s CBD and 26 kilometres from Sydney’s CBD, providing proximity to c.1.5m households within one hour’s drive time3, making it an ideal infill industrial logistics asset.

The industrial asset was acquired from private property investment and development company, Leda Holdings.

Jason Huljich, Centuria Joint CEO, said, “This off-market acquisition is part of Centuria’s strategic industrial investment approach to secure assets for LMLP with short WALEs, which provide an opportunity to capitalise on strong rental reversion opportunities, driven by low vacancies within key urban markets.”

Rob Ell, Leda Group Managing Director, said “The divestment provides opportunities for Leda to build on its pipeline of industrial and residential projects, while opening the door to new prospects in the market.”

The 19-21 Loyalty Road acquisition builds on more than $335 million of gross real estate activity Centuria has executed in FY24 year to date while adding to its $6.0 billion industrial portfolio.

Centuria is one of the largest industrial landlords across Australasia with more than 160 assets4.

Colliers’ Gavin Bishop and Sean Thomson represented the vendor throughout the sales process.

1. Weighted Average Lease Expiry (WALE) by income as at 21 September 2023.
2. Occupancy by income as at 21 September 2023.
3. Source: SA1 data.
4. As at 30 June 2023.