JLL has negotiated the sale of an off-market, $10,800,000 industrial facility at 431 Victoria Road, Malaga WA to the unlisted, closed-ended fund, Centuria Industrial Income Fund No.1 (CIFF1), which is managed by the ASX-200 listed Centuria Capital Group (ASX: CNI or Centuria).

JLL’s Ross Palframan and Nick Goodridge brokered the off-market transaction, which set a new record for yields in Perth’s northern industrial precinct of Malaga, trading at an initial yield of 5.0%.

431 Victoria Road occupies a strategic 1.51 ha site, providing a 4,912 sqm industrial facility and immediate access to both Reid and Tonkin Highways. The asset is 100% leased to Select Plant Hire, a subsidiary of international engineering and construction parent company Laing O’Rourke, on a seven-year term.

JLL’s Industrial & Logistics Associate Director, Ross Palframan said, “431 Victoria Road provides a long-term income stream secured by a strong leasing covenant, as well as future development potential with its low site coverage of circa 33%. The site is a strategic landholding within close proximity to key residential catchments, allowing CIIF1 significant future value-add opportunity.”

“This transaction emphasises the yield compression that has continued into 2022 off the back off a buoyant 2021 investment market and reinforces the continued nationwide appetite for institutional investment into the West Australian logistics & industrial sector,” said Mr Palframan.

JLL’s Head of Industrial & Logistics (WA), Nick Goodridge said, “With WA’s economy being a stand-out amongst the country the local industrial market has benefitted from significant and diverse occupier demand, supporting unmatched levels of liquidity across the investment landscape.”

Ross Lees, Centuria’s Head of Funds Management said, “CIIF initially launched 12 months ago with three assets across Queensland and South Australia. Due to the industrial sector’s strong tailwinds providing robust revaluations, coupled with the fund’s debt headroom, we acquired the Malaga industrial facility to deliver value to our investors through an enhanced portfolio by providing greater diversification and scale.”

CIIF1 now incorporates four industrial properties collectively worth $88.1 million, with a 7.8-year WALE and 100% occupancy.

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