Centuria divests three industrial assets

Centuria Capital has divested three industrial assets in Southeast Queensland at an average sales premium of 25%.

The real estate funds manager said it capitalised on strong investment demand for industrial assets, benefiting from tailwinds created by the "Olympic effect," which includes strong population growth, limited land supply, and infrastructure development.

According to Global Commercial Real Estate Services, Brisbane industrial transactions have increased year-on-year by 36% in Q1 2025 to $333 million.

The assets, located in Stapylton, Salisbury, and Heathwood, were held for medium to long-term periods and were approaching their respective extended term expiries.

Underpinned by separate single-asset funds, they've delivered internal rate of returns (IRRs) exceeding 11% for each fund's investors.

Centuria funds management head Jesse Curtis said the domestic industrial market has benefitted from strong tailwinds in recent years, which have persisted with limited supply, impeding construction costs, and continuous population growth.

Curtis said these tailwinds have been bolstered further by infrastructure investment resulting from Southeast Queensland readying itself for the 2032 Olympic Games.

"The strength of investment demand for industrial assets within key Southeast Queensland growth corridors is evident by the number of non-solicited approaches we've received, which has helped us achieve strong sales premiums to prior book values," Curtis said.

In May, Centuria exchanged sales contracts on 76 Quinns Hill Rd Stapylton for $40 million, 14% above its prior book value. Centuria acquired the asset in 2016 for $23 million.

In April Centuria exchanged contracts with a private investment company for 121 Evans Road, Salisbury for $10.45 million at around a 9% premium to the asset's prior book value.

174 Stradbroke Street, Heathwood, meanwhile, exchanged contracts for $10 million, providing a 54% sales premium to its prior book value.

The asset was acquired in 2005 for $3.28 million and is anticipated to provide an 11.4% IRR.

Modus handled the sale of Stapylton, while Colliers managed the transactions for Salisbury and Heathwood.

Centuria manages over $6.2 billion of industrial assets across Australian and New Zealand.