Centennial secures industrial estate site for discount
Centennial has secured a major Ipswich industrial development site for a 24.5 per cent discount to land value.
The 67 hectare parcel – of which 23ha is developable – is costing $35.5 million.
The manager recently raised $26.9m, closing oversubscribed, for the single asset fund which will now hold it – the Warrego Industrial Park Trust.
A low site cover, open-air estate is planned.
A base internal rate of return between 15-17pc is the aim, it added.
“Under-rented”: Centennial
At 540-604 Warrego Highway, North Tivoli, the asset produces an income from hardstand, but is considered “heavily under-rented”, Centennial told investors.
The Warrego Industrial Park will contain about 26 lots including a super-parcel beside the Warrego Highway.
“The site is currently 60pc under-rented in an industrial and logistics market that is experiencing significant undersupply of sites such as this,” the manager added.
“The objective of the trust is to deliver enhanced investor returns…through an active leasing and asset management strategy,” it said (story continues below).
“On the outskirts of Ipswich, the site is zoned for Heavy Industry and holds multiple EPA and Heavy Industry licenses, making it suitable for a wide range of industrial operations.
“Centennial plans to leverage the property’s distinctive attributes…and the scarcity of available hardstand leasing spaces, to offer a compelling value proposition to prospective tenants”.
North Tivoli is about 35 kilometres south west of Brisbane’s CBD.
Open air estate planned
With the Warrego Hwy acquisition, Centennial controls 61 properties worth a total $1.3 billion; these are in the east coast states and South Australia.
Its development pipeline circles $300m.
“This transaction highlights the strong and persistent demand for land-rich, income producing assets in the greater Brisbane region, with competition between private and institutional buyers for properties under $40m at an all-time high,” Blue Commercial’s Gary O’Shea, who brokered the off-market deal, said.
“The property’s prime location, directly adjacent to the Warrego Highway and at a major intersection, enhances its appeal as industrial users push further west in their search for open-air industrial estates,” he added.
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