Centuria has tapped into the regional industrial market with the acquisition of a $35.5 million distribution centre in Mackay, reflecting a 7.24% equivalent market yield.
The 13,843 sqm industrial facility comprises a high-quality distribution centre including a showroom, office and warehousing.
It featured a 11-13-metre clearance, full height racking system, mezzanine floor, pick and pack floor area, dispatch and receipt areas each via nine roller doors with awning cover.
The property was located in Paget – the main industrial and distribution centre for the Mackay region being in proximity to the Mackay Airport, the Mackay rail intermodal terminal, Port of Mackay, and the Bruce Highway.
It was fully leased to Wesfarmers’ safety supplies subsidiary, Blackwoods, on a 6.1-year weighted average lease expiry (WALE) with annual CPI-linked rent reviews.
“This Central Queensland acquisition captures the strong tailwinds of the domestic industrial market while harnessing the sector’s robust rental growth, driven by low vacancy rates and constrained supply,” Centuria Joint CEO Jason Huljich said.
“Furthermore, Mackay is strategically positioned to service a significant North Queensland catchment area including Cairns, Townsville and Mount Isa.
“Centuria continues to seek out strategically located, fit-for-purpose industrial assets that are underpinned by quality tenants on favourable leasing covenants.
“The Mackay property ticks all these boxes while also providing a value-add development opportunity, which could potentially extract further returns for our investors.”
The acquisition will be the underlying property for Centuria’s new single-asset, closed-ended unlisted real estate fund, Centuria Industrial Income Fund No. 2.
In March 2021, Centuria completed the Centuria Industrial Income Fund No.1 (CIIF1), raising $40 million for the acquisition of four assets, collectively worth $89 million.
The Paget acquisition follows Centuria’s recent 50% investment in the $223 million Allendale Square office building in Perth.
Centuria Bass Credit recently invested $169 million across five loan facilities, while Centuria Healthcare Property Fund made about $42 million worth of acquisitions.
Colliers International’s Simon Beirne acted on behalf of the Paget vendor.
