Centuria Buys $11 Million Industrial Assets

A Centuria Capital fund has bought an industrial facility in Malaga for $10.8 million at a record yield of 5 percent, demonstrating strong demand for industrial real estate in Western Australia.

The 4,912 square foot facility on a 1.51 hectare site at 431 Victoria Road has been purchased through Centuria’s privately held closed-end fund Centuria Industrial Income Fund No.1.

V10 Property Pty Ltd has sold the asset, which is managed by the directors of Perth Real Estate Advisory SVN.

The asset is fully leased to Select Plant Hire, subsidiary of Laing O’Rourke, for a term of seven years.

JLL’s Ross Palframan and Nick Goodridge brokered the off-market deal, which set a new record for the industrial district.

Mr. Palframan said the asset provided a long-term revenue stream, secured by a strong leasing covenant, as well as future development potential.

“The location is a strategic landholding in close proximity to important residential areas, making [Cenuria] significant future value-adding opportunity,” he said.

“This transaction highlights the compression in yields that has continued into 2022 after a booming investment market in 2021 and reinforces the ongoing nationwide appetite for institutional investment in WA’s logistics and industrial sectors.”

Mr Goodridge added that WA’s local industrial market had benefited from significant and diverse demand as its economy stood out nationally “and supported unparalleled levels of liquidity in the investment landscape.”

Ross Lees, Centuria’s head of fund management, said the privately held fund was originally launched 12 months ago, with three assets in Queensland and South Australia.

“Due to strong industrial sector tailwinds driving robust revaluations, coupled with the fund’s debt space, we acquired the Malaga industrial facility to deliver value to our investors through an enhanced portfolio by providing greater diversification and scale ,” he said.

The recent acquisition brings the assets of Centuria Industrial Income Fund No.1 to four industrial properties valued at $88.1 million, with a weighted average maturity of 7.8 years and a 100 percent occupancy rate.

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