- Located at 69-79 Diesel Drive, Paget, Mackay, Queensland
- Is an over 13,000 sqm facility leased to a Wesfarmers subsidiary
- Paget is the main industrial and distribution centre for the Mackay region
Centuria Capital Group (ASX: CNI) has launched a new single-asset closed-ended unlisted real estate fund.
Centuria’s $35.5 million acquisition of a 13,843 square metre industrial facility in Mackay will be the underlying property for the fund, to be called Centuria Industrial Income Fund No. 2 or CIIF2).
Located at 69-79 Diesel Drive, Paget, Mackay, Queensland, the facility is 100% leased to Wesfarmers’ safety supplies subsidiary Blackwoods, on a 6.1-year WALE with annual CPI-linked rent reviews.
The asset was acquired on a 7.24% equivalent market yield, and has a low (46%) site coverage, providing potential expansion opportunities.
The property has dual road frontage and a near-level topography. It comprises a high-quality distribution centre, including a showroom, office, warehousing with 11-13-metre clearance, full height racking system, mezzanine floor, pick and pack floor area, dispatch and receipt areas each via nine roller doors with awning cover. A small manufacturing facility on land to the rear is subleased to another Wesfarmers subsidiary, Coregas.
Paget is the main industrial and distribution centre for the Mackay region being in proximity to the Mackay Airport, the Mackay rail intermodal terminal, Port of Mackay, and the Bruce Highway, which connects North Queensland to Southeast Queensland.
Jason Huljich, Centuria Joint CEO said, “This Central Queensland acquisition captures the strong tailwinds of the domestic industrial market while harnessing the sector’s robust rental growth, driven by low vacancy rates and constrained supply. Furthermore, Mackay is strategically positioned to service a significant North Queensland catchment area including Cairns, Townsville and Mount Isa.
“Centuria continues to seek out strategically located, fit-for-purpose industrial assets that are underpinned by quality tenants on favourable leasing covenants. The Mackay property ticks all these boxes while also providing a value-add development opportunity, which could potentially extract further returns for our investors.”
Jason Huljich, Centuria Joint CEO
“Centuria benefits from approximately two-thirds of its platform being weighted towards unlisted real estate funds. The unique composition appeals to various capital sources and can accommodate a range of properties across the asset classes we are presently focused on growing within. We continue to see attractive themes within the industrial sector and are pleased to be delivering this new investment opportunity for our unlisted investors,” Mr Huljich concluded.
* Update: GARDA (ASX: GDF) announced that it has disposed of the above-mentioned 69 Diesel Drive property. The disposal was made at a 9.4% or $3.7 million discount to the current book value of $39.2 million.
Completion of the sale is currently scheduled for 8 December 2022, with the net sale proceeds to be applied to reduce drawn debt (for GARDA) to $235 million.
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