Centuria Industrial REIT has splashed about $24 million on an industrial facility in Melbourne and two development sites in Perth and Adelaide.
The urban infill acquisitions include the 5,331 sqm industrial property at 95 Fulton Drive in the Melbourne suburb of Derrimut for $12 million, reflecting a 4.25% capitalisation rate.
The property was fully occupied and had a 0.7-year weighted average lease expiry (WALE).
The REIT bought the 2.5-hectare brownfield site at 204-208 Bannister Road, Canning Vale in Perth for $10.1 million.
The site would be developed into about 12,300 sqm of modern sustainable industrial space, with a targeted 5-star Green Star rating.
A 1.25-ha site at Lot 16 Caribou Drive in the Adelaide suburb of Direk was also purchased for $2.3 million.
The site, which adjoined the company’s existing 9-13 Caribou Drive property, would be developed into a 6,900 sqm industrial facility.
The trust said the three deals presented a combined end value worth $59 million.
The company also disposed of a 6,020 sqm property at 30 Clay Place, Eastern Creek in Sydney for $34.5 million, representing a 37% premium to its previous book value.
Jesse Curtis, CIP Fund Manager and Centuria Head of Industrial, said divesting of a non-descript asset presented an opportunity to recycle capital into higher-yielding strategic acquisitions and developments.
“The acquisitions build on CIP’s high-quality industrial portfolio within urban infill, land constrained markets with access to densely populated catchments,” Curtis said.
“We continue to position the portfolio towards capturing rising tenant demand while benefitting from rental growth in highly sought industrial markets.”
The transaction comes after the trust acquired a portfolio of six urban industrial assets located across Melbourne, Sydney and Brisbane worth a combined end-value of $132.4 million in January.
Nationally, investment into industrial and logistics property continued at full steam during the first quarter of 2022, with deal volume totalling $4.1 billion.