- Located at 204 Bannister Road, Canning Vale, WA
- Estimated on-completion value of $31M
- Perth vacancy rate 0.9%
Centuria Industrial REIT (ASX: CIP) has broken ground on its new industrial facility in Canning Vale, WA.
Located at 204-208 Bannister Road, the 2.5-hectare brownfield development was secured off-market by Centuria in June this year. The asset was valued at $10.1 million in CIP’s Property Compendium FY22, with the estimated on-completion value of the asset circa $31 million.
Centuria said it will develop 204-208 Bannister Road into a 12,300 square metre, institutional-grade, dual-tenancy facility, comprising an 8,600 square metre tenancy and a 3,700 square metre tenancy.
The warehouses will incorporate a 13.7m clearance, ESFR sprinkler system, multiple on-grade doors, recessed loading docks, container-rated hardstand and corporate offices. The asset will also be future-proofed for the installation of a 38m super awning on the larger industrial unit.
The building is also targeting a five star Green Start rating. Initiatives include, amongst other things, a PV solar system, recycled water, EV forklift charging stations, sustainable and recycled building materials and native drought tolerant vegetation.
Perth’s strong leasing conditions reflect a low 0.9% vacancy rate, according to Colliers’ Research September 2022, which is driving exceptional 19.6% year-on-year rental growth within the prime market– the second-highest rental growth recorded within Australia, according to JLL Research October 2022.
Compounding these conditions is a limited new supply of only 55,900sqm of development currently under construction and coming to market by mid-2023, of which, 47,350sqm is already pre-committed.
Jesse Curtis, CIP Fund Manager and Centuria Head of Industrial, said, “Perth’s core, supply-constrained industrial market provides an exceptional opportunity to capture strong tenant demand from the burgeoning ecommerce sector and businesses looking to increase their on-shoring capacity to avoid supply chain disruption.
“CIP is seeking to further increase its exposure to various WA industrial markets and this development project provides an opportunity to capture rental growth. Importantly, we have selected a dual-tenancy sustainable design configuration to meet demand for last-mile, urban infill industrial facilities.”
Jesse Curtis, CIP Fund Manager and Centuria Head of Industrial
Andre Bali, Centuria Head of Development added, “We have a strong track record for delivering high-quality, market-leading, industrial developments across Australia, more recently in New South Wales, Queensland, South Australia and Victoria.
“While the development market is currently facing challenges, such as access to quality sites, cost and funding escalation, supply chain and resourcing constraints, Centuria and CIP continue to find value-add development opportunities for our investors.
“For all our industrial developments, we target a minimum five-star green star rating to ensure our tenants are provided with future-proofed, highly sustainable property, which aligns with Centuria’s broader ESG mandate.”
