Centuria Capital Group has acquired an industrial facility in Canning Vale, Western Australia, for some $38.6 million via capital raised from the Centuria Select Opportunities Fund (CSOF).
According to Centuria, the deal marks the largest industrial transaction by value in Perth since December 2023 and is the only institutional-grade asset in Perth to be marketed during the past 24 months.
Commenting on the acquisition, Centuria head of funds management Jesse Curtis said it marks the firm’s fifth Canning Vale asset, a market that continues to benefit from a significant supply-demand imbalance and strong rental growth.
“In fact, Perth has experienced the strongest industrial rental growth of all national markets in 2024 due to extremely limited vacancy. With limited new supply coming to market and an expanding local population, we believe these positive tailwinds will persist in the medium term,” Curtis said.
“The Gauge Circuit acquisition is consistent with CSOF’s high conviction mandate, focused on securing value-add real estate opportunities. Each CSOF acquisition benefits from a low WALE [weighted average lease expiry], low site coverage, and were secured with below market rental values.
“The upside is that these properties are located in tightly held urban infill markets, which provide potential to capture significant positive rental revisions and redevelopment optionality.”
Centuria, after raising funds from its wholesale investor network in late 2023 and during a 15-month deployment window, has now secured its fourth asset. This brings the CSOF portfolio value to approximately $100 million with a 3.1-year WALE and 100 per cent occupancy.
Since the capital deployment period commenced in March last year, Centuria has seen a +13 per cent valuation uplift across the three existing properties within the portfolio.
The firm clarified that CSOF’s initial five-year fund term commences from next month, targeting a 15 per cent internal rate of return.
“The portfolio we’ve secured for this high conviction, total return fund also speak to the strength of our in-house transactions team and its ability to source and secure compelling investment opportunities,” Curtis added.
In its half-year results last month, Centuria announced operating net profit after tax of $51.1 million for HY25, up from $49.4 million for the corresponding period the year before.
In an ASX announcement, it said its total operating revenues of $165.4 million reflected resilience from property funds management income and co-investments.
Group assets under management reported a loss over the half, at $20.5 billion, down from $21.1 billion in HY24.
This included $11.4 billion of unlisted real estate, $5.96 billion of listed real estate, $3.2 billion of real estate finance, and $0.9 billion of investment bonds.
