Centuria Capital Group (ASX:CNI) Acquires $216m Port Adelaide Industrial Estate
Acquisition Details
Centuria Capital Group (ASX:CNI) has acquired the Port Adelaide Distribution Centre for $216 million, approximately 70% below its replacement cost. This acquisition supports the creation of Australia’s largest single-asset unlisted industrial fund, the Centuria Port Adelaide Industrial Fund (CPAIF).
Asset Information
Located at 25 – 91 Bedford Street, Gillman, South Australia, the 32-hectare industrial estate comprises thirteen buildings leased to seventeen national and international tenants, including Visy Logistics, Ameropa Australia, Toll Transport, and Spendless Shoes. The estate features warehouses ranging from 1,700sqm to 21,000sqm, with a 3.4-year WALE and 93% occupancy in Adelaide’s northwest industrial precinct, which has a vacancy rate of 1.5%.
Investment Opportunities
The acquisition expands Centuria’s industrial platform to over $6 billion. CPAIF will offer a five-year term, available to retail, wholesale, and institutional investors starting September 2025. The fund targets an equity raise of $116 million, with investments from $50,000, and forecasts distributions of 7.50% p.a. for FY26 and 8.50% p.a. in FY27, paid monthly.
Executive Comments
Jason Huljich, Centuria Joint CEO, stated, “This was a rare opportunity to secure a trophy Adelaide asset at a time when the local market benefits from cyclical tailwinds credited to low vacancy, strong leasing demand and limited new supply. Adelaide has one of Australia’s strongest leasing markets with materially lower rents in comparison to other capital cities. We are very excited to secure this asset at a substantial discount to replacement cost.
“The acquisition is a strong start to FY26 and we anticipate significant investor interest due to the decreasing interest rate environment. We anticipate further, attractive investment opportunities for both domestics and international capital over the coming year. We continue to see improving conditions within the transactional market with falling debt costs, strong international investor interest for well-priced and well-located property, and healthy retail/wholesale investor appetite.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.
