Centuria Capital has secured a $500 million institutional investment mandate on behalf of a US private investment firm that will focus on acquiring assets within supply constrained industrial markets across Australia.
It will be known as the Last Mile Logistics Partnership, (LMLP) and it has started with a $76 million three-asset portfolio of properties located within urban Melbourne industrial precincts. It is the second industrial institutional capital partnership secured by Centuria in the last year.
Jason Huljich, Centuria’s joint chief executive, said the group’s institutional capital investments now total $2.2 billion across the logistics, healthcare, daily needs retail and office property sectors.
“The new LMLP mandate adds to Centuria’s deep distribution network as we continue to secure further capital sources across the group,” Huljich said. JLL’s head of international capital Australia and New Zealand, Kate Low, introduced the capital partner to Centuria.
Australia’s industrial vacancy rate of less than one per cent is one of the lowest on a global scale and these supply constraints are driving exceptional rental growth, particularly within tightly held last-mile urban infill markets.
The ASX-listed Centuria’s $6 billion industrial platform consists of 160 properties across Australia and New Zealand which are highly concentrated in infill logistics markets, being sites closer to the high-density city fringe areas.
Capitalising on the strong industrial market tailwinds, Centuria Capital Group recently sold two adjoining industrial facilities located at 114 and 120 Old Pittwater Road, Brookvale, which is anticipated to deliver a forecast 13.8 per cent internal rate of return to the assets’ close-ended fund investors.
Ross Lees, Centuria head of funds management, said the strategic landholdings were acquired in July 2012 and have delivered compelling returns to investors throughout the past 11 years.
“With strong market tailwinds, we believe now is an opportune time for divestment and to capitalise on the Pittwater Road Trust coming to its end. We will continue to provide our unlisted investors across Australia with further well-positioned industrial investment opportunities in the future.”
Colliers International’s Gavin Bishop and Sean Thomson, together with CBRE’s Jason Edge, Jack Pershouse and Chris O’Brien were the appointed sales agents for the Brookvale transaction.
In the leasing market, where industrial vacancy is at a record low, Austrans, a national logistics and transportation operator, has leased the last remaining speculative warehouse at Bankstown Airport.
The lease establishes a new prime industrial rent benchmark in western Sydney at about $280 per square metre.
JLL’s Peter Blade, Greg Pike, Bella Cass, and Adam Scimone, negotiated the seven-year lease for Building 4B, 1 Kirby Place, spanning 14,615 square meters of premium warehouse and office space developed by Altis Property Partners.
According to JLL Research, industrial rental growth remained strong in the second quarter of 2023 in NSW, following a record year of growth in 2022. Despite record completions in 2022, the rental market continues to be driven by increasingly tight leasing availability.
“Industrial rents are soaring for sustainable warehousing. The demand for cutting-edge, environmentally conscious, and strategically positioned industrial spaces is on the rise,” Pike said.
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Source: Thanks smh.com