musgrave road qld
This warehouse in Copper Plains was acquired in October. Image –
  • Centuria 's Industrial REIT is currently enjoying 99.1% occupancy
  • Rental growth of 10% has been recorded
  • Recent activity accounts for 8% of the portfolio's gross lettable area

Centuria Industrial REIT (ASX: CIP) has today announced the successful leasing of 106,832sqm worth of industrial space across 22 transactions since the beginning of this financial year.

The listed industrial real estate trust fund said in a statement that this is an illustration of the demand nationally for such space, especially from e-commerce-related tenants. This success has resulted in rental growth of 10% from prior passing rents.

CIP’s occupancy has increased to 99.1%, maintaining a weighted average lease expiry (WALE) of 8.9 years. The recent activity alone accounts for 8% of the portfolio’s gross lettable area.

“CIP has delivered significant leasing outcomes since the start of FY22,” said CIP Fund Manager and Centuria Head of Industrial, Jesse Curtis.

“This leasing activity and positive rental growth is driven from Centuria’s proactive in-house asset management team, who capitalise on the quality of CIP’s urban infill focused portfolio together with the industrial sector’s record low vacancy rates and elevated tenant demand.”

Jesse Curtis, Centuria

jesse curtis
Jesse Curtis. Image – LinkedIn.

Major renewals include an Ingleburn, NSW property where Real Pet Food Company has signed up for a new 15-year triple-net lease covering over 25,666 sqm.

Opal Packaging Australia has also signed up for a new 10-year lease in Bibra Lake, WA, covering over 19,173sqm.

Notable value-added initiatives executed in the financial year so far include the acquisition of 48-54 Kewdale Road in Welshpool, WA which is undergoing refurbishment works and has secured a 32% lease to existing tenant AMES Australasia.

A warehouse on 55 Musgrave Road in Copper Plains, QLD, was acquired in October with 89% occupancy with this asset now 100% occupied.

CIP’s asset 8 Lexington Drive, Bella Vista NSW has also welcomed a new 10-year lease for over 8,740sqm for a major international eCommerce brand.

“This significant leasing activity has delivered immediate value to CIP investors,” continued Mr Curtis.

“We continue to source and deliver on exceptional value-add opportunities including refurbishments and developments to achieve higher rental rates and attract high-calibre national and international clients.

“Evidenced through recent acquisitions and leasing success, this has demonstrated CIP’s ability to identify and execute on relative value within the transactions market.”

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