Industrial Income Fund No.2

Centuria Industrial Income Fund No.2

Open for investment

7.55% p.a.

forecast distribution^1,2
paid monthly

4.51 year

WALE³

$0.96

unit price⁴

$50,000

minimum investment

Fund status: Open for investment – with a limited amount of units available for investment

APIR CNT8216AU

The Fund has acquired a modern, purpose-built logistics facility which is 100% leased to Blackwoods, a subsidiary of ASX-listed Wesfarmers.

The Fund’s drawn debt is fully hedged at a rate of 3.30% until the end of November 2025 (in addition to bank margin of 1.45%) ⁴ which assists in providing an attractive, tax-effective forecast return of 7.55% (annualised) in FY24 ^1,2.

Situated in the gateway to Central Queensland’s regional markets, the property is strategically located in Mackay’s main industrial precinct of Paget at 69-79 Diesel Drive in close proximity to the city’s airport and intermodal terminal. Furthermore, the asset is also well positioned to benefit from continued investment within the mining, engineering, technology and services sectors within the region.

Constructed in 2014, the property features a Weighted Average Lease Expiry (WALE) of 4.51 years by income³ and has the potential to add value through future expansion of the warehouse.

The Fund was awarded a ‘Recommended’ rating by Core Property Research in November 2022⁵. Please download and read the research report.

The fund has a limited amount of units available for investment. If you would like to receive a Product Disclosure Statement for the Centuria Industrial Income Fund (Fund), please complete the expression of interest form below.

Quicklinks

Fully leased

industrial asset

Secure income

subsidiary of
ASX-20 company

3.00%-3.50% p.a.

rent reviews

Development

potential

Fund highlights

Approximately three and half years remaining of the initial investment term⁶
Modern blue-chip logistics facility leased to Blackwoods, a subsidiary of ASX-listed Wesfarmers
$50,000 minimum investment
High-quality asset, constructed in 2014 and under institutional ownership since completion
DA approval to expand the warehouse.

Forecast distribution yields

The Fund is forecast to provide attractive, tax-effective returns of 7.55% p.a. (annualised) in FY24^1,2, with distributions being paid on a monthly basis.

Minimum investment

The minimum investment in the Fund is $50,000. Centuria may accept investments that are less than this amount at its discretion.

Fund term

The Fund will have an initial investment term of five (5) years, of which there is 3.44 years remaining⁶.

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 seven (7) 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.

Risks

All investments in unlisted property funds carry risk. As the Fund invests in industrial property, it carries the market and property risks associated with investing in industrial 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.

Express your interest

Continuous disclosures

Date	Continuous Disclosure
16/07/2024	The FY25 forecast distribution rate for the Centuria Industrial Income Fund No. 2 is forecast to increase from 7.00 cents per unit (annualised) to 7.25 cents per unit (annualised) paid in monthly instalments. 69-79 Diesel Drive, Paget, Mackay, Queensland was subject to a Directors valuation as at 30 June 2024, which held the acquisition value of $35.50 million. Please note that updated unit pricing will be confirmed upon completion of audited financial accounts as at 30 June 2024. The forecast distribution rate is predictive in nature and is subject to assumptions, risks and circumstances (both known and unknown) outside of the control of the Fund. This forecast distribution rate reflects the current performance of the Fund and assumes all tenants will satisfy their contractual obligations under their respective leases within a timely manner. It also assumes there are no significant unforeseen capital costs, and no material changes to the Fund’s financial obligations. Centuria does not guarantee the performance of the Fund, the repayment of capital or any income or capital return.
31/12/2023	69-79 Diesel Drive, Paget, Mackay, Queensland was subject to an independent valuation as at 31 December 2023, which held the acquisition value of $35.50 million. The Fund’s unit price as at 31 December 2023 is $0.96 per unit. This is a change from the unit issue price of $1.00 per unit stated in the Fund’s current Product Disclosure Statement dated 14 November 2022. The decrease from the unit issue price is largely attributed to the amortisation of establishment costs and movements in the valuation of swap valuations as the tenor decreases.
30/06/2023	69-79 Diesel Drive, Paget, Mackay, Queensland was subject to a Directors valuation as at 30 June 2023, which held the acquisition value of $35.50 million.
9/03/2023	The FY23 forecast distribution rate for the Centuria Industrial Income Fund No. 2 will be increasing from 6.50 cents per unit (annualised) to 7.00 cents per unit (annualised) paid in monthly instalments. The Fund also provides guidance to retain the increased forecast distribution rate of 7.00 cents per unit for FY24.
9/12/2022	Effective 9/12/2022, the Fund has executed an interest rate swap transaction for a notional amount of $16,850,000 at a fixed rate of 3.3037% per annum over an approximate three-year period.
8/12/2022	The Fund has settled its purchase of 69-79 Diesel Drive, Paget, Mackay, Queensland, Australia (the ‘Property’). Situated in the Mackay region of Central Queensland, the Property is fully leased with 100% of the gross income underpinned by the subsidiary of a blue chip ASX listed company.
14/11/2022	The Fund is now open for investment. Centuria Industrial Income Fund No.2 is a single asset, closed ended unlisted property fund, which will own 69-79 Diesel Drive, Paget, Mackay, Queensland, Australia.

Forecast returns are predictive in nature and are calculated in accordance with a number of underlying assumptions set out in the Product Disclosure Statement (PDS), which is dated 14 November 2022. 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.
Forecast distribution yield for the period 1 July 2024 to 30 June 2025 based on a unit price of $0.96.
Weighted average lease expiry (by gross income) as at 31 June 2024.
As at 31 December 2023
Ratings are only one factor to be taken into account when deciding whether to invest in a financial product.
3.44 years of remaining initial investment term as at 31 June 2024

Disclaimer: Centuria Property Funds Limited (ABN 11 086 553 639 AFSL 231 149) (Centuria) is intended to be the Responsible Entity for the Centuria Industrial Income Fund No. 2 (Fund, ARSN 663 453 487, APIR CNT8216AU). Centuria has applied to register the Fund with the Australian Securities and Investments Commission (ASIC) as a registered managed investment scheme. A copy of the Product Disclosure Statement (PDS) for the Fund is expected to be available on or around 14 November 2022 at www.centuria.com.au/ciif2. 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 can access a copy of this Fund’s Target Market Determination (TMD) document, expected to be available on or around 14 November 2022 at centuria.com.au/design-distribution-obligations-ddo/. You should also 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.