Australasian real estate funds manager, Centuria Capital Group  (ASX: CNI or “Centuria”), has secured a third asset for its wholesale unlisted fund, Centuria Select  Opportunities Fund (CSOF or “Fund”), a $21.9 million dual-tenant warehouse facility in a prime industrial  precinct, 11km northwest of Adelaide’s CBD. 

Located at 7 Brandwood Street, Royal Park SA, the premium asset is the Fund’s third property. It provides a  value-add opportunity for wholesale investors being secured significantly below estimated replacement cost.  Additionally, with current rental values substantially below market rents, there is further opportunity for  positive rent reversions in the medium term. 

The transaction improves the Fund’s return profile and geographic diversity by adding a fully leased high quality infill industrial asset. The transaction is part of CSOF’s 15-month capital deployment campaign and  the transaction places the Fund within its 15% IRR target. 

Jesse Curtis, Centuria Head of Funds Management, said “We launched CSOF in late 2023 and have  secured three quality assets for it during the calendar year, all of which provide compelling value-add  propositions for our investors.  

“Our inhouse team has sourced properties that lend themselves to upward rent reversions, with a potential to increase underlying values. This strategy plays to Centuria’s strengths having a demonstratable track record  for executing leasing, repositioning and development projects that improve properties’ performance. 

“We are capitalising on non-core divestment opportunities within the market to extract outsized returns for  our investors and the Royal Park facility enhances CSOF’s diversification by location and tenant profile.” 

Centennial's Executive Director Paul Ford, said the group was "delighted with the sale of the facility" which  emphasised the national fund manager and developer's expertise in identifying, acquiring with functional  improvements at or below land value and transforming, mid-space infill logistics sites into sustainable  institutional-grade investments.  

"The Royal Park site had sat vacant for many years before we acquired it in 2021, however its location and  functional yet dated existing improvements enabled us to refurbish the facility, achieve strong environmental  credentials via our “Regen” strategy and fully lease it prior to works being completed.” 

The premium 12,700sqm industrial facility sits within a 3.1ha corner site and provides full drive-around  access, extensive hardstand, multiple on-grade roller doors and sustainable features including energy efficient LED lighting, ESFR sprinkler systems, solar panels, rainwater harvesting and low carbon materials. The asset benefits from a full refurbishment, completed in 2023. 

It is well-connected to major transport routes, including the M2 Motorway, Princes Highway and Grand  Junction Road. 

The property is leased to air-conditioning system provider, Daikin Australia, and courier and express freight  company, Allied Express Transport, providing a 6.3-year WALE. 

In addition to the Royal Park asset, CSOF’s portfolio includes a $23million Keysborough VIC industrial facility  and an $20million Wetherill Park NSW warehouse. 

Centuria is an ASX-200 listed real estate manager with a track record exceeding 25 years and manages a  $21 billion platform including a $6 billion industrial portfolio.  

The Royal Park property was sold via Colliers Gavin Bishop, Sean Thomson and Paul Tierney and CBRE’s  Chris O’Brien and Andrew Bell. 

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