CIP secures WA’s largest industrial leasing deal for 2024¹

AWH Pty Ltd renews 94,000sqm+ industrial lease

• AWH extends Bibra Lake WA lease for seven-year term to 2032
• Deal encompasses five warehouses totalling 94,241sqm across 21.1-ha site, 100% occupancy
• Extension ensures AWH’s business continuity, operational on site since 2012
• CIP’s largest tenant by area, accounts for 4% of CIP’s annual rental revenue

Australia’s largest listed pure-play industrial fund, Centuria Industrial REIT (ASX: CIP), has secured WA’s largest industrial leasing deal for the 2024 calendar year-to-date¹, extending AWH’s lease across 94,241sqm for a further seven-year term from 1 August 2025.

AWH has operated across its premises within 310 Spearwood Avenue and Lot 14 Sudlow Road, Bibra Lake WA since 2012, and its new deal means it will remain on site until 2032.

AWH is one of Australia’s leading logistics and warehousing specialists, providing storage, handling, transport and inventory management services for import, export and domestic distribution. AWH is also the world’s largest wool and independent cotton handler. AWH operates out of 16 locations throughout Australia. Further information regarding AWH can be found at: awh.com.au.

Michael Potenza, AWH’s Chief Executive Officer said, “Business continuity is a significant consideration for our operations. We are the largest independent logistics services provider to the Australian wool and cotton industries, handling approximately one million bales of wool annually while also facilitating sale room services for the three national wool selling centres as part of our third party logistics (3LP) operations.

“So our premises are key to our operations. There are few industrial sites within proximity to road, sea ports, airports and rail transport nodes of this scale in WA, which is why we have continued to operate from here since 2012.”

AWH is CIP’s largest tenant by area and accounts for 4% of the REIT’s annual rental revenue. It is also part of CIP’s Top 10 customer tenants by revenue.

Grant Nichols, CIP Fund Manager said “We are very pleased to extend AWH’s lease on this significant southwest Perth industrial precinct. AWH has a long history at the site and the lease renewal demonstrates further leasing momentum within CIP’s portfolio.

“Active asset management, and a portfolio focused on urban infill industrial markets, has enabled CIP to continue executing strong leasing activity across both west and east coast Australia.”

In addition to AWH’s lease extension, CIP also recently leased an 8,800sqm warehouse at 204-208 Bannister Road, Canning Vale WA to Chairay Sustainable Plastic, on a five-year term from 1 August 2024. The newly completed two-unit industrial facility has now achieved 100% occupancy.

In total, CIP has leased more than 103,000sqm across its WA portfolio in recent months.

CIP’s portfolio is eight per cent² weighted to Western Australia, totalling nine assets worth c.$350million². CIP’s entire Australian portfolio comprises 89 assets worth $3.8 billion².

1.  AWH is the largest industrial leasing transaction within WA 2024 year-to-date
2.  As at 31 December 2023.