Centuria secures $33m Tottenham warehouse for Starwood partnership

• • Off-market, value-add transaction: near-term rent reversion upside and future development optionality
  • Fifth industrial asset for Starwood’s local portfolio, expands partnership to circa $200 million
  • Tightly-held inner west Melbourne market, leveraging strong tenant demand for infill industrial assets
  • Transaction exemplifies Centuria’s capability to originate attractive opportunities for third-party capital

Australasian real estate funds manager, Centuria Capital Group (ASX: CNI), has expanded the industrial portfolio of its US institutional partner, Starwood Capital, securing a $33 million industrial facility in the tightly-held urban infill market of Tottenham, VIC.

The transaction is the fifth off-market property secured for the Last Mile Logistics Partnership (LMLP) with the portfolio expanding to circa $200 million.

Located at 1 Quarry Road, Tottenham, within the well-established inner west Melbourne industrial market, the 8,016qm warehouse sits within a four-hectare site, providing a low 20% site coverage. The asset is 100% occupied by Cargo Freight Services.

Jesse Curtis, Centuria Head of Funds Management, said “We are proud to secure this off-market, opportunity for our investment partner, Starwood, within a very tightly held industrial market with excellent proximity to Port Melbourne and major arterial roads. The asset’s low site coverage provides future development optionality and Centuria has a strong track record for executing value-add strategies to the benefit of our investors.

“Significantly, the property is currently leased 65% below comparable market rents and provides near-term rental reversion upside. We are securing the asset at a 40% discount to replacement cost, which further illustrates Centuria’s aptitude for sourcing value-add investment opportunities for our institutional partners.”

Built in 2006, the industrial facility is 5km from Port Melbourne, 11km from Melbourne’s CBD and in proximity to major arterials The West Gate Freeway and Western Ring Road.

The facility benefits from an internal clearance of up to 10m, c.20,000sqm hardstand, three on-grade roller doors and 16 raised loading docks, ESFR sprinklers and dual site access. Approximately 1.4 million householders are within one hour’s drive from the Quarry Road site.

Currently, Australia has one of the lowest national vacancy rates (2.5%)¹ among global industrial markets, which makes an attractive investment proposition for international institutions.

Jason Huljich, Centuria Joint CEO, said, “Strong domestic industrial market tailwinds, coupled with a weaker Australian dollar, means international institutions are looking closely at local industrial facilities with compelling value-add opportunities. This plays to Centuria’s strengths.”

Centuria is one of the largest industrial landlords across Australasia with more than 160 assets² worth c.$6 million³. It has a $1.2 billion development pipeline, providing investors with access to new-generation industrial facilities⁴.

Centuria secured the Tottenham warehouse from a private vendor who was represented by Jones Real Estate’s Paul Jones.

1. Source: CBRE Research Industrial & Logistics 1Q25 (April 2025)
2. As at 31 December 2024. Excludes development assets, landholdings and assets that had exchanged but not yet settled at this date.
3. As at 31 December 2024
4. Estimated value on completion. Includes land, development cost and estimated development upside