Centuria launches new unlisted industrial fund

Oksana Patron

9 November 2022

Centuria Capital Group has announced it has secured $35.5 million distribution centre in Mackay, Queensland, for its new single-asset closed-ended unlisted real estate fund, Centuria Industrial Income Fund No.2 (CIIF 2).

Centuria’s joint chief executive officer, Jason Huljich, said that two-thirds of Centuria’s platform was weighted towards unlisted real estate funds which appealed to various capital sources and could accommodate a range of properties across the asset classes.

He said this Central Queensland purpose-built acquisition, an industrial facility which is 100% leased to Wesfarmers’ safety supplies subsidiary Blackwoods, captured “the strong tailwinds of the domestic industrial market while harnessing the sector’s robust rental growth, driven by low vacancy rates and constrained supply.”

Additionally, Mackay is strategically positioned to service North Queensland catchment area including Cairns, Townsville and Mount Isa.

The property is also the main industrial and distribution centre for the Mackay region in close proximity to the Mackay Airport, the Mackay rail intermodal terminal, Port of Mackay, and the Bruce Highway.

“We continue to see attractive themes within the industrial sector and are pleased to be delivering this new investment opportunity for our unlisted investors,” Huljich added.

The acquisition followed Centuria’s recent 50% investment in the $223 million office building in Perth, around $169 million invested across five loan facilities by Centuria Bass Credit, and around $42 million worth of acquisition by the Centuria Healthcare Property Fund (CHPF).

Also, in March 2021, Centuria completed the Centuria Industrial Income Fund No. 1 (CIIF 1), raising $40 million for the acquisition of four assets, collectively worth approximately of $89 million.