Bus making plant turned distribution centre fetches $22m
Centennial has turned an impressive profit selling the ex-Custom Coaches manufacturing plant and repair centre after three years, a repurpose and letting campaign.
In Royal Park, the 3.112 hectare holding at 7 Brandwood Street (pictured, top), on the north west corner of Wilson, is collecting $21.9 million.
It paid KPMG $5.95m including GST, later refitting the c12,830 sqm of improvements as two tenancies and rebranding the complex the Royal Park Distribution Centre.
Last year Centennial filled it: Daiken signed for 7580 sqm for 10 years while Allied Express committed to 5250 sqm until 2028.
Centuria is the buyer for the Select Opportunities Fund (CSOF), launched late last year seeking counter-cyclical opportunities.
Below market rent: Centuria
The Royal Park site sat empty for years before Centennial bought it.
“With current rental values substantially below market rents, there is further opportunity for positive rent reversion in the medium term,” the buyer said.
“This transaction is part of CSOF’s 15 month capital deployment campaign and the transaction places the fund within its 15pc internal rate of return target,” it added (story continues below).
CBRE’s Chris O’Brien and Andrew Bell with Colliers’ Gavin Bishop, Sean Thomson and Paul Tierney were the agents.
CSOF portfolio grows to three
The Royal Park Distribution Centre is the third CSOF asset.
The fund was seeded with a Keysborough, Melbourne, investment – which set it back $20.6m ex-GST.
Following a $50 capital raising in April, a Wetherill Park, Sydney, warehouse, costing $17m, was added.
Royal Park is 11 kilometres north west of Adelaide’s CBD.
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