ASX-listed Centuria Industrial REIT has announced the acquisition of three cold storage industrial facilities for A$171.1m. The purchase price reflects an average initial yield of 5.62%.
The facilities in New South Wales, Victoria and Queensland total 44,899sqm of gross lettable area. The properties are currently 100% occupied and have an average lease expiry of 6.4 years.
Announcing the deal, Centuria added that it planned to raise A$125m in an institutional placement to help fund the acquisition. And then on Wednesday (the day following the acquisition) the company put out a further statement saying that the money had been successfully raised by issuing 40.8 million new CIP units at a price of A$3.06. The issue price for the raise reflected a 2.9% discount to the closing price on 16 November.
CIP’s Fund Manager, Mr. Jesse Curtis, commented, “CIP has received strong demand from new and existing institutional investors. The success of the placement indicates an ongoing endorsement for our strategy to provide investors exposure to the key sub-sectors of industrial real estate that are underpinned by resilient and quality tenant customers.”
Following the transaction, CIP’s portfolio increases to 59 assets worth $2.3billion. The average occupancy across Australia’s largest pure play industrial REIT portfolio now stands at 96.8% with a 9.7-year WALE.