36-caribou-drive-south-australia-centuria-diversified-property-fund-feature
A render of the 36 Caribou Drive property in South Australia. Image – Supplied.
  • Two acquisitions to be worth $50M
  • South Australian development will be completed January 2023
  • Malaga site has redevelopment potential

Centuria has acquired secured two industrial facilities for its unlisted Centuria Diversified Property Fund (CDPF).

The acquisitions will be the first industrial properties to join the CDPF portfolio, which at 31 March had 15 properties, including a number of commercial offices and one mental health hospital in Perth.

The two properties are worth a combined $50 million, 11.45 year weighted average lease expiry (WALE), and underpinned by blue-chip national tenants.

Direk, South Australia

A warehouse development in Direk, South Australia is one of the two acquisitions. The property is currently a 5.4-hectare greenfield site at 36 Caribou Drive and is expected to have an end value of $38.25 million once the warehouse is complete.

The development will comprise a 21,160sqm warehouse, and 820sqm office space, pre-let on a 15-year lease to Apex Steel Suppliers

Located within the same estate as Centuria Industrial REIT’s (ASX: CIP) 9-13 Caribou Drive property, Direk is one of Adelaide’s major northern industrial precincts, benefiting from close proximity to Highway 1 and the recently completed Northern Connector, which improves connectivity to the broader major transport network.

36 Caribou Drive is expected to be completed by January 2023.

Malaga, Western Australia

The $11.75 million maintenance depot located at 171 Camboon Road, Malaga is the second property, currently and fully leased to Cleanaway Waste Management, with a 4.3 year WALE.

centuria diversified property fund 171 camboon road malaga property cleanaway waste management
CDPF 171 Camboon Road, Malaga, property currently leased to Cleanaway Waste Management. Image – Supplied.

Recently settled, the property is occupied by the waste management company since the 1980s, the property is a purpose-built vehicle maintenance depot, with s a 3,228sqm multi-level office, workshop with canopies, and truck wash facilities; Centuria also noted the land has redevelopment potential.

Portfolio impact

CDPF is currently raising capital to fund the acquisitions, with a target of $30 million.

Following the acquisitions and development, the CDPF industrial asset weighting is expected to increase to 21.5% and extend portfolio WALE from 3.65 years to 5.17 years.

Currently, portfolio occupancy on the CDPF website is noted as 98.72%, occupancy is expected to increase to 98.9% following the acquisitions.

Who’s investing?

Mum and dad, said Centuria Joint CEO Jason Huljich:

“There is strong appetite from retail investors to secure quality industrial logistics assets that deliver compelling yields, especially in this low interest rate environment.”

Jason Huljich, Centuria Joint CEO

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