Centuria Makes $171m Industrial Warehouse Move


Centuria Industrial has secured a three-asset industrial portfolio of cold storage facilities, worth $171.1million on a 5.62 per cent yield.

The deal comprises three cold storage assets in Brisbane, Sydney and Melbourne within the resilient industrial and logistics sector.

The east-coast portfolio is 100 per cent occupied by national and international operators, including national refrigerated transport and distribution provider Rand Transport.

The REIT also announced a $125 million fully underwritten institutional placement to partially fund the portfolio buy.

The Sydney asset, a 25,418sq m cold storage facility, was acquired for $73.1 million and secured on a seven-year triple-net lease to a wholesale food distributor on a sale-and-leaseback deal.

▲ The Derrimut facility in Victoria was purchased for $49 million. Lead image, the facility in Girraween secured for $73.1 million.
▲ The Derrimut facility in Victoria was purchased for $49 million. Lead image, the facility in Girraween secured for $73.1 million.

Located at 67-69 Mandoon Road, Girraween, the REIT said the asset is six kilometres from Parramatta and within a key in-fill industrial market.

Both cold storage facilities at 45 Fulton Drive, Derrimut in Melbourne and 60-80 Southlink Street, Parkinson Brisbane, were each secured for $49 million. The two assets are leased to leading national refrigerated transport and distribution provider, Rand Transport.

In an announcement to the ASX, Centuria said its income from non-discretionary, food distribution and cold store facilities increased to 33 per cent following the portfolio acquisition.

The REIT upgraded its financial year 2021 funds from operations guidance from 17.4 cents per unit to 17.5 cents per unit, reaffirming its distribution per unit guidance of 17 cents.

Centuria head of funds management Ross Lees said the 2020 calendar year had experienced a “considerable consumer shift” towards non-discretionary online retailing due to the impact of Covid.

“Adding to this is the unmet demand for cold storage facilities from the grocery and pharmaceutical sectors. These metrics have underpinned Centuria’s rapid portfolio expansion within the industrial and logistics sector.

“Within the past 12 months, Centuria’s funds have acquired approximately $1.1billion in industrial assets. It has been a resilient sector and one we believe will continue growing in the near future.”

The purchase expands the fund’s portfolio to 59 assets with occupancy of 96.8 per cent.

Keeping busy this year, the active REIT in October secured the Visy Glass manufacturing facility across the Tasman in Auckland for NZ$179 million ($167 million), throughout August to October it purchased a five-asset portfolio for $106 million, and in August it completed the purchase of a $417 million Telstra data centre in Clayton, Melbourne.

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