cranes sunrise industrial sunset
The sun continues to shine on industrial real estate as valuations jump. Image – Canva.
  • Key developments on the east coast drive the portfolio
  • $192M or 8.1% in increases from prior book values, said external valuations
  • Net tangible assets (pro forma) increased from $2.99 to $3.32 per unit

The Centuria name has been doing exceptionally well across its various ASX listed companies, Centuria Office REIT (ASX: COF), and Centuria Capital Group (ASX: CNI), as well as the New Zealand arm.

Centuria Industrial REIT (ASX: CIP) recently completed revaluations of the company portfolio, the value up by $192 million, or 8.1% “from prior book values”. The company total portfolio value increased to $2.6 billion.

This follows external valuations on “56 of its 61 investment properties as at 31 March 2021, reflecting approximately 93% of the portfolio by value.”

Some of the key properties providing Centuria Industrial REIT with healthy figures include the Telstra Data Centre in Victoria which saw a valuation jump of $28.3 million and 50 basis points of capitalisation rate compression, two properties in Greater Western Sydney which saw increases in $11.8 million and $3.4 million with the basis points up 75 for both, and a property just west of the Brisbane Airport saw a $20 million increase with 37.5 basis points of capitalisation rate compression.

Valuations rises are a continuing boon for CIP, earlier in the year the company settled three acquisitions and seem to have more on the way, one of which includes a glass plant in New Zealand.

It’s a seemingly a trend that Centuria is putting its confidence in, Jess Curtis, CIP Fund Manager said:

“Australia’s industrial property market is currently experiencing a substantial re-rate, attracting significant investment demand from both domestic and international capital. Major transactions in the market continue to show capitalisation rate compression, complemented by strong tenant demand from e-commerce and a scarcity of investment grade assets.”

Jess Curtis, CIP Fund Manager

The company is in an “extremely strong position holding occupancy of 97.7%, WALE of 9.8 years and portfolio capitalisation rate of 4.96%”. It is what the company called a ‘tailwind’ in the industrial real estate market, a positive sign for the sector.

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