Centuria portfolio achieves average 25% sales premium to book value in SEQ industrial sector

Olympic-effect helps deliver +11% IRR

• +$60m in SEQ industrial divestments across three assets, sold off-market via unsolicited approaches
• Medium to long-term investments capitalise on local infrastructure boom and population growth
• Benefits from unmet investor appetite, Brisbane industrial transactions up 36% yoy¹

Australasian real estate funds manager, Centuria Capital Group (ASX: CNI or “Centuria”), has capitalised on strong investment demand for industrial assets within Southeast Queensland, divesting three assets at an average sales premium of 25%.

The assets, underpinned by separate single-asset funds, have achieved Internal Rate of Returns (IRRs) exceeding 11% for each fund’s investors.

Located in Stapylton, Salisbury and Heathwood, the properties were held for medium to long-term periods and were approaching their respective extended term expiries.

The divestments harness strong tailwinds from the ‘Olympic-effect’ resultant from strong population growth, limited land supply and infrastructure developments. According to CBRE, Brisbane industrial transactions have increased year-on-year by 36% in Q1 2025 to $333 million¹.

Jesse Curtis, Centuria Head of Funds Management, said, “The domestic industrial market has benefitted from strong tailwinds in recent years, which have persisted with limited supply, impeding construction costs and continuous population growth. However, in Southeast Queensland, these tailwinds have been bolstered further by infrastructure investment resulting from the region readying itself for the 2032 Olympic Games.

“The strength of investment demand for industrial assets within key Southeast Queensland growth corridors is evident by the number of non-solicited approaches we’ve received, which has helped us achieve strong sales premiums to prior book values.”

In May, Centuria exchanged sales contracts on 76 Quinns Hill Rd Stapylton for $40 million, 14% above its prior book value². Centuria acquired the asset in 2016 for $23 million. The unsolicited approach is anticipated to deliver an c.12% IRR.

In April Centuria exchanged contracts with a private investment company for 121 Evans Road, Salisbury for $10.45 million at a c.9% premium to the asset’s prior book value². The off-market approach is expected to provide ac.12% IRR. The asset was acquired in 2015 for $6.13 million.

174 Stradbroke Street, Heathwood exchanged contracts for $10 million, providing a 54% sales premium to its prior book value². The asset was acquired in 2005 for $3.28 million and is anticipated to provide an 11.4% IRR.

Centuria manages more than $6.2 billion of industrial assets across Australian and New Zealand³.

Modus’ Jack Pershouse acted on the sale on Stapylton, Collier’ Gavin Bishop and Sean Thompson acted on the sale of Salisbury and Colliers’ Levi Maxwell and David Brisk acted on the sale of Heathwood.

1. Source: CBRE Research – Brisbane Industrial & Logistics Q1 2025. Sales volumes measured on assets more than $5 million.
2. Prior book value as at June 2024
3. As at May 2025