The closed-ended Fund is acquiring a 100% interest in three high-quality industrial assets located in Brisbane and Adelaide. The Fund is forecast to provide attractive, tax-effective distribution yields of 6.00% p.a.1,2(annualised) in FY21 and growing to 6.25% p.a.2 in FY22.
Situated within core industrial locations in close proximity to major transport infrastructure, the properties are 100% leased to a range of national and multi-national tenants in the logistics, manufacturing and distribution sectors.
Featuring a WALE of 9.1 years by income4, the portfolio comprises 28,213 sqm of gross lettable area and is positioned well to benefit from significant infrastructure investment in both Queensland and South Australia, as well as the structural tailwinds being provided to the broader industrial real estate sector by the accelerating shift to online retail.
All three leases over the properties are structured on a net basis and include fixed annual rent increases of between 3.00% and 3.50%, which delivers healthy built-in rental growth.
A Product Disclosure Statement for the Centuria Industrial Income Fund No.1 (Fund) is now available and the Fund is open for investment. If you wish to download a PDS, please complete an online form.
|2-8 Titanium Court|
|WALE by income||10.0 yrs|
|Gross lettable area||4,978 sqm|
|Site area||1.02 ha|
|136 Zillmere Road|
|Tenant||Bradnam’s Windows & Doors|
|WALE by income||10.3 yrs|
|Gross lettable area||16,048 sqm|
|Site area||3.19 ha|
|68-70 Kapara Road|
|WALE by income||3.3 yrs|
|Gross lettable area||7,187 sqm|
|Site area||2.45 ha|
With an initial Fund gearing of 45%, the Fund is forecast to provide attractive, tax-effective distribution yields of 6.00%p.a.1,2 (annualised) in FY21 and growing to 6.25%p.a.2 in FY22, with distributions being paid on a monthly basis.
The minimum investment in the Fund is $50,000. Centuria may accept investments that are less than this amount at its discretion.
The Fund will have an initial investment term of six (6) years.
The Fund term may be extended by up to an additional two (2) years by an Ordinary Resolution of the Investors (more than 50% of votes cast are in favour of the extension). The term of the Fund may be extended beyond eight (8) years for up to two (2) years at a time where a Unanimous Resolution is passed by Investors (100% of votes cast are in favour of the extension).
The Fund term may also be extended where a Unanimous Resolution is not passed, but all Investors who voted against the Unanimous Resolution are given an opportunity to have their Units sold or redeemed at the prevailing Withdrawal Price (Liquidity Event). Whether a Liquidity Event is offered is determined by Centuria. Please refer to the PDS for more information about a Liquidity Event.
If a Liquidity Event is not offered by Centuria, then the Fund term will not be extended and Centuria will sell the Property and wind up the Fund.
No redemption facility is available.
Centuria Capital Group is an ASX listed specialist fund manager with $9.7 billion5 of assets under management.
Centuria Property Funds offers investments in listed and unlisted property across high quality office, industrial and healthcare assets around Australia. We are a relationship business, forging close connections with investors and actively managing properties to improve usability and attract and retain good tenants. We see this as our competitive advantage, which has helped us achieve a strong record of competitive income returns and capital growth.
The unlisted business has a 20 year heritage and in that time, has completed numerous unlisted property funds.
Centuria’s investment philosophy is founded on an active management approach to real estate where relationships are key and value can be added at all stages of the investment process (acquisition, ownership, management and disposal). Centuria has a particular strength in identifying assets that require intensive asset management to maximise returns and has an in-house team to deliver the requisite range of value-add services. Centuria does not try to predict broader macro economic trends but instead believes that an asset that is well acquired and actively managed will outperform a passive approach through the full economic cycle.
Centuria believes in a “hands-on” approach to managing property assets. Unlike a lot of property fund managers, Centuria does not outsource its property management to real estate agents (although property management may be outsourced in remote locations or for special purpose assets). Centuria has a fundamental belief that it can deliver better returns from its property assets by having a closer relationship with the tenants and a better understanding of the buildings themselves.
All investments in unlisted property funds carry risk. As the Fund invests in commercial property, it carries the market and property risks associated with investing in property. As a geared investment, the Fund also carries associated financial and leverage risks. Risks can impact on distribution and capital returns over the term of the Fund. It is important that you read the Product Disclosure Statement and understand the risks of investing.
(1) Annualised distribution yield for the period 1 March 2021 to 30 June 2021.
(2) Forecast returns are predictive in nature and are calculated in accordance with a number of underlying assumptions set out in the Product Disclosure Statement. As such, returns may be affected by incorrect assumptions or by known or unknown risks and uncertainties and may differ materially from results ultimately achieved. Returns are not guaranteed.
(3) Distributions will be paid if declared by Centuria Property Funds Limited and will be subject to the terms set out in the PDS.
(4) As at 1 March 2021.
(5) As at 22 October 2020.
Disclaimer: Centuria Property Funds Limited ABN 11 086 553 639, AFSL 231149 (Centuria) is the responsible entity for the Centuria Industrial Income Fund No.1 (Fund) (ARSN 646 752 178). Centuria will issue a Product Disclosure Statement (PDS) for the Fund on or around 1 February 2021. This information is general information only and does not take into account the objectives, financial situation or particular needs of any person. You should consider whether this information is appropriate for you and consult your financial or other professional adviser before investing. You should obtain and read a copy of the PDS relating to the Fund before making a decision to invest. Centuria and its associates will receive fees in relation to an investment in the Fund as disclosed in the PDS. Investment in the Fund is subject to risk including possible delays in payment or loss of income and principal invested. Centuria does not guarantee the performance of the Fund.