Centuria Industrial REIT (ASX:CIP) buys six industrial assets

Company News

by Lauren Evans

Centuria Industrial REIT (ASX:CIP) has acquired six industrial assets across Australia’s eastern seaboard with a combined value of $132.4 million.

The property group said the assets capitalise on land constrained, urban infill markets that are in high demand from ecommerce operators seeking close proximity to densely populated areas to improve supply chain efficiencies.

Among the acquisitions is an eight-hectare site in the North Melbourne industrial market of Campbellfield, which has a short term lease. The acquisitions in Derrimut, Port Melbourne and Wetherill Park adjoin existing Centuria assets, while the Acacia Ridge and Clayton South acquisitions build further scale in its sub-portfolios in South Brisbane and South East Melbourne, respectively.

The acquisitions increase the company’s total portfolio to $4 billion and will be funded by new and existing debt facilities.

“One of CIP’s strategic focuses is to provide investors with exposure to urban infill industrial locations that cater to last-mile, ecommerce operators. The urban infill locations of these eastern seaboard acquisitions provide a favourable leasing outlook for rental growth, underpinned by near zero vacancy, buoyant tenant demand and limited land supply,” said fund manager Jesse Curtis.

“The purchase of this portfolio marks a strong start to 2022 and continues to demonstrate CIP’s management capability to source and execute on strategic acquisitions.”

Shares in Centuria Industrial REIT (ASX:CIP) are trading 0.1 per cent higher at $3.90.

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