Opportunity fund snaps up another east coast asset
Centuria has bought another industrial property for a counter-cyclical fund backed by $50 million from wholesale investors.
At 26 Redfern Street, in Sydney’s west Wetherill Park, the asset is setting the manager back $17 million.
Covering nearly 9900 square metres, it contains two buildings with a total 4530 sqm.
More than half the parcel is undeveloped, the manager said, giving it scope to value-add, possibly via an extension.
The region has one of the lowest industrial vacancy rates in the country (0.9 per cent), it added.
Management and leasing will now be bought in-house.
The property will be the second held by the Centuria Select Opportunities Fund, which is seeking to dispose of its initial $50m cash raise by mid-next year.
The other asset – a logistics investment on 1.94 hectares in Melbourne’s south-east Keysborough – cost it $20.6m last month.
Centuria will co-invest in the unlisted trust.
Counter cyclical investments
The two Redfern St buildings each contain 2265 sqm with a 150 sqm office, multiple at-grade roller doors and high clearance (story continues below).
One warehouse includes a 3.2 tonne gantry.
The other has surplus hardstand.
Cushman & Wakefield’s Carl Pearce, Nick Brooks and Alistar Siokos were the agents.
Centuria head of Funds Management, Jesse Curtis, said CSOF will continue to capitalise on market opportunities with its counter-cyclical strategy.
“The Wetherill Park property provides an opportunity to lean on Centuria’s strong in house management capabilities to achieve compelling re-leasing spreads and rental income in line with the wider infill central Sydney industrial market,” he added.
“The fund will generate returns by improving the functionality of the warehouses and undertake strategic leasing to access stronger rental streams from the asset,” according to the executive.
“It is positioned within proximity to the major arterial roads including the M7 motorway, M4 motorway, Cumberland Highway and The Horseley Drive, providing superior connectivity and accessibility to the Greater Sydney region”.
Some 1.4 million households are within a 60 minute commute, Mr Curtis said.
Wetherill Park is eight kilometres south west of Parramatta.
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