Centuria Capital Group’s industrial portfolio now exceeds $5 billion in worth following a recently announced portfolio acquisition costing over $350 million.
Applauding the group’s $5.1 billion milestone, Jason Huljich, Centuria joint CEO, said the corporate strategy will continue to see the company purchase new asset classes with a view to up its market dominance.
“This $5.1 billion milestone is a significant achievement for the group. It reaffirms our corporate strategy to invest into new asset classes through corporate acquisitions, then using the group’s strong balance sheet and distribution capability [to] further bolster market dominance within these specific sectors,” Mr Huljich said.
The group upweighted its exposure to industrial assets through the acquisition of Centuria Industrial REIT in 2017.
According to Jesse Curtis, CIP fund manager, Centuria’s growth within the industrial sector is centred around the acquisition of high-quality, well located industrial and logistics assets.
“As the sector is experiencing strong tailwinds and competition for assets increases, we attribute our continued success to the deep knowledge and expertise of our in-house acquisitions, development and asset management teams with the group having transacted more than $1.3 billion of industrial transactions over the last 15 months and with an industrial development pipeline of $158 million delivering projects across Australia and New Zealand,” said Mr Curtis.
Moving forward, Ross Lees, Centuria head of funds management, said the group will maintain its focus on metropolitan infill sites that are catered to the last mile logistics sector.
“The high-quality, infill metropolitan market investment strategy has been a proven success for CIP as evidenced by the REIT’s recent $351.3 million industrial portfolio acquisition, which expanded its total portfolio value to $3.5 billion while delivering market leading investment returns. We are now applying this investment strategy across our unlisted funds within Australia and New Zealand,” Mr Lees said.
Since 2017, CIP has delivered a gross total shareholder return (TSR) of 117.6 per cent and has outperformed the S&P/ASX 300 A-REIT Index by 69.3 per cent over the same period.
