Morgan Stanley Takes Half-Stake in Centuria Assets

Financial services giant Morgan Stanley has spent $180.9 million for a 50 per cent stake in a host of Centuria’s industrial assets. 

Centuria Industrial REIT assets across three states are included in the deal, which Centuria said demonstrated the continued demand for high-quality urban infill industrial assets that benefit from rental growth.

Two NSW sites, at 8 Lexington Drive, Bella Vista and 29 Glendenning Road, Glendenning were part of the transaction.

In Victoria, 95-105 South Gippsland Highway at Dandenong South, 40 Scanlan Drive at Epping and 69 Studley Court, Derrimut, were included, while in Queensland two sites at Bundamba were also acquired—42 Hoepner Road and 1 Ashburn Road. 

Collectively, the collaboration will be known as the Centuria Prime Logistics Partnership (CPLP). 

A statement from Centuria said this would enable it to bolster its balance sheet by reducing debt “while retaining exposure to these high-quality strategic assets”. 

Centuria head of industrial Jesse Curtis said that the partnership showed its commitment to “prudent” capital management and portfolio optimisation. 

“The formation of this partnership demonstrates the resilience of CIP’s portfolio and the continued demand for high-quality industrial assets within urban infill markets in which CIP operates,” Curtis, who is also CIP fund manager, said.

Morgan Stanley Real Estate Investment is no stranger to working with Centuria, having already established the healthcare real estate vehicle Centuria Prime Partnership in May 2022. 

The partnership announced its launch with the acquisition of a 3000sq m site in Alexandria for a seven-storey, 10,500sq m private hospital.

The transaction reflects a divestment yield of 4.7 per cent and settlement is expected in December 2022. CBRE acted on behalf of CIP.