Centuria says in largest industrial leasing deal of 2017

Centuria Property Funds has announced two leasing deals for its listed industrial trust, Centuria Industrial REIT.

The trust has renewed leases with AWH, Australia’s largest wool-handling operation, for CIP’s existing asset at 310 Spearwood Avenue, Bibra Lake, WA (44,296sqm) (below), and for the recently acquired adjoining asset at Lot 14 Sudlow Road (39,485sqm) (picture above).   

The term will come into effect after the settlement of Lot 14 Sudlow Road in September.

AWH is the largest tenant in CIP’s portfolio and occupies 11% of the trust’s gross leasable area (GLA).

The deal caps off a busy period since Centuria took control of CIP in January that resulted in an expansion of its portfolio, which increased in size to $957 sqm.

The period also saw a refinancing CIP’s entire bank debt facilities and leasing activity across 19% of the portfolio.

CIP Trust manager, Ross Lees, said it was Australia’s largest industrial leasing transaction for 2017.   

“This deal will extend AWH’s tenure by an average of 5.6 years across both properties, significantly reducing CIP’s FY20 lease expiry profile, which is great news for CIP investors,” he said.

AWH is one of Australia’s leading logistics and warehousing specialists, occupying more than 650,000 sqm.

The company provides storage, handling, freight forwarding and inventory management services for import, export and domestic distribution, and services over 55% of the nation’s traded wools, added Lees.

“We are active managers and a relationship-based business,” said Lees.

“By maintaining close relationships with tenants and investors, we are aware of their needs and able to swiftly take advantage of market opportunities for the benefit of both.”