Centennial drops anchor at Portside Wharf and lands premier waterfront retail precinct for $59.4m

• Centennial acquires Portside Wharf retail assets for $59.4m

• Asset comprises 68 highly diversified retail tenancies over 13,731 sqm net lettable area (NLA) + 398 carparks | Anchor tenants include: Dendy Cinemas, Subway and IGA |average WALE 6.2 years

• Initial net rent $4.2m p.a. reflecting 7.1% passing yield at 83% occupancy and 11.4% fully let

• Opportunity to enhance value by creating a health and wellness hub, unlocking value within the parking area and/or creating a new marina precinct

• Vendor is Brookfield Asset Management with sale brokered by James Douglas, Joe Tynan and Michael Hedger of CBRE
  

BRISBANE, QLD: National property investment group and developer, Centennial has acquired one of Brisbane’s premier inner-city waterfront retail precincts at Portside Wharf, Hamilton for $59.4m.

Purchased from Brookfield Asset Management and brokered by CBRE, the sale of the landmark retail asset went unconditional this week and comprises a 100 per cent interest in 68 retail tenancies offering a combined net lettable area (NLA) of 13,731 sqm, plus 398 car spaces and a substantial “wet lease”.

Anchor tenants include national chains, Dendy Cinemas, Subway and IGA, plus a diversified tenancy mix spanning fine dining, entertainment, retail, services and allied health categories to reflect the precinct’s broad customer demographics comprising local residents, visitors and tourists.

Located within 7km of Brisbane’s CBD, the retail precinct is positioned in the heart of the thriving Portside Wharf residential enclave, that first opened in 2006 and now comprises around 2,000 apartments spread across a number of towers. An additional, 14,000 new dwellings are slated to open in the immediate area which forms part of the state government’s Northshore Hamilton Priority Development Area (PDA).

The Hamilton Northshore PDA is gazetted as a major recreation, residential and tourism destination and is currently undergoing extensive transformation works.

Centennial’s Executive Director, Paul Ford said the company was delighted to secure such a unique institutional-grade, retail precinct with absolute water frontage which lends itself to multiple value-add and growth opportunities, with minimal capital expenditure required.

“The retail component currently delivers a net rental income of $4.2m, which reflects a 7.1 per cent passing yield at 83 per cent occupancy and a 11.4 per cent yield when fully leased,” Mr Ford said. “This is a premium asset offering a strong income and total return profile.

“This acquisition takes our retail exposure to circa $250m which aligns well with our medium-term goal of $1bn. After extensive research, we decided to lean into the retail sector about 12 months ago as it was and still is offering far superior risk adjusted returns, relative to other real estate sectors.”

Centennial’s growing asset portfolio drives new senior team hires 

As the value of Centennial’s property assets under management and development heads towards $3bn, the leading investment manager and developer has announced two senior appointments to its growing asset management and leasing team.

Elena Seymour joins Centennial as Head of Asset Management to lead the asset management team across New South Wales, Queensland, Victoria and South Australia.

Ms Seymour has over 16 years’ experience working in the institutional real estate space. For the past ten years she was heavily focused on leading the industrial and logistics asset management as Regional Portfolio Manager for Queensland, at Charter Hall Group where she contributed to significant growth through leasing and supporting the development pipelines, resulting in a portfolio of 95 assets and $4bn funds under management.

A strong advocate for the national industrial and logistics sector, Ms Seymour was an active member of the Property Council’s Queensland Industrial Committee with a major focus on improving town planning outcomes and infrastructure pipelines. She also held the role of chair of the Council’s Queensland Industrial division between 2019 to 2021.

Also joining Centennial is Amanda Swan, who moves into the role of Asset & Leasing Manager NSW. Ms Swan previously led the Western Australia industrial and national agriculture portfolios for Centuria Capital, including managing Perth Airport’s portfolio of industrial and office leases for over five years.

At Centennial, Ms Swan will focus on the performance of the company’s assets in New South Wales, including driving the leasing activities across the group’s industrial & logistics and commercial plus assets.

Centennial currently manages 87 properties worth over $2.6bn across Australia with a further $1bn of developments in the pipeline. Managing Director and Group CEO, Adrian Taylor said, “Elena and Amanda’s broad ranging skills across sectors further strengthens Centennial’s asset management and leasing capabilities.”

“I am very proud of our team that now numbers 45 industry professionals in four states,” Mr Taylor said. “As a fully integrated property investment and development business, our growth is based on the exceptional knowledge and service our team consistently delivers to our customers.”

Centennial and Parkstone go shopping in Orange and buy a neighbourhood retail centre for $37.4m

• Centennial and Parkstone Funds Management partner again to purchase ‘The Village on Summer Street’ (The Village) shopping centre in Orange, NSW for $37.37m

• The Village occupies the largest landholding in Orange’s CBD (21,090 sqm) | including 2,573 sqm of developable land

• Centre is over 99 per cent leased |anchored by Supa IGA and Dan Murphy’s + 10 specialty retailers across 4,974 sqm of gross lettable area (GLA) + 268 car bays

• Strong retail investment demand for Centennial / Parkstone’s closed-end ‘Village on Summer Unit Trust’ after a successful $20m capital raising in late 2024

• The partnership will increase the retail offer at the centre post-development by ~40 per cent

• Steven Lerche of Savills and Nick Willis, Sam Hatcher and Sebastian Fahey of JLL brokered the sale
  

SYDNEY, NSW: Centennial and its retail joint venture partner Parkstone have kicked off the year by purchasing their second top performing regional shopping centre asset – in Orange, 250km west of Sydney in the Central Tablelands – for $37.4m.

‘The Village on Summer Street’ (the Village) is a prominent neighbourhood centre in Orange’s city centre occupying a 21,090 sqm site representing the single largest landholding in the CBD.

The retail component which currently comprises just over 23 per cent of the site’s coverage or 4,974 sqm of gross lettable area (GLA), gives the new owners significant scope to maximise returns and build on the centre’s tenancy mix.

Centennial and Parkstone acquired a 100 per cent freehold stake in The Village on Summer Street from hospitality identity Bill Gravanis and renowned architect Paul Saunders, that was partly funded by a $20m capital raising, which closed early and oversubscribed in December 2024.

The closed-end ‘Village on Summer’ fund is targeting an internal rate of return (IRR) of 15 to 17 per cent per annum comprising a healthy income component based on the centre’s dominant position in the region, its defensive characteristics derived from a retail mix geared towards non-discretionary retail spend, and its strong value add potential and convenient access to car parking.

The Village is anchored by Supa IGA, one of Australia’s top performing Dan Murphy’s, ten specialty retailers and is supported by 268 car parks. The partnership is proposing to develop a further ~1,800 sqm of retail space in the short term on the back of current demand from national retailers.

The centre was built in 1993 and underwent a significant $4m refurbishment in late 2022 leading to the Village winning a major building award from the Master Builders’ Association of New South Wales in the latter half of 2024.

Centennial buys industrial jewel in Sydney’s surging inner south for $39.1m 

• Centennial acquires 9,595 sqm last mile industrial infill site at 81-87 Beauchamp Rd, Matraville for $39.1m | 700m from Port Botany and under 5km from Kingsford Smith Airport

• Site purchased ‘vacant possession’, enabling immediate upgrades to an existing 6,240 sqm warehouse targeting mid-space (~870 to 1,300 sqm) occupiers

• Vendor: EG Funds | Agents: Colliers’ Gavin Bishop, Sean Thomson, Michael Crombie & Trent Gallagher, and JLL Ben Hegerty, Jack Kelliher and Joel Scully

• Asset added to Centennial’s Enhanced Value Partnership (EVP) fund
  

SYDNEY, NSW: As competition for scarce industrial infill sites in Sydney’s inner south heats up, Centennial has entered the fold securing a prime ~9,600 sqm logistics site, at Matraville for $39.1m after a lengthy search for a suitable mid-space, value-add investment for its Enhanced Value Partnership (EVP) fund.

Acquired from EG Funds and brokered by Colliers and JLL, the well positioned site, 700 metres from Port Botany, at 81-87 Beauchamp Road Matraville contains a vacant (6,240 sqm GLA) multi-tenancy warehouse that had previously generated an annual passing income of ~$1.282m.

The site benefits from favourable zoning which provides flexibility to accommodate large format and showroom retailers in addition to the existing strong demand from last mile logistics operators.

Centennial will spearhead the refurbishment and repositioning of the property following settlement in December to capitalise on the inner south’s standing as the nation’s tightest held industrial market, and low vacancy rate currently sitting at 1.8 per cent.

Having identified a lack of newer warehouse stock catering for the mid-size occupier market, Centennial will roll out its mid-space, value-add strategy to focus on businesses seeking between 870- to 1,300 sqm of space.

Centennial’s quest for last mile infill sites secures prime location in Brisbane’s surging Australia TradeCoast

• Centennial acquires 3.46-ha last mile industrial infill site at 50-80 Manton Street Morningside from Lendlease for $18.5 million

• ‘TradeCoast Connect’, site to be developed into a multi-unit estate| ~17,000 sqm GFA across 4 buildings with an end value ~$78m
  

• Asset joins Centennial $700m Enhanced Value Partnership (EVP) fund

• Estate brings Centennial’s assets in the tightly held Australia TradeCoast economic precinct to nine (0.6 per cent vacancy for sites >3,000 sqm)
  

• Gary Hyland and Owen Byles of Cushman Wakefield brokered the sale
  

BRISBANE, QLD: Centennial’s appetite for prime, last mile industrial sites in Brisbane’s Australia TradeCoast is gathering pace and scale with the group notching up its ninth I&L asset within the surging economic trading zone after acquiring a 3.46-hectare infill site for $18.5m from Lendlease.

The national fund manager and developer which specialises in acquiring mid-size, last mile, industrial and logistics assets acquired the vacant site, 5 kilometres north east of Brisbane’s CBD at Morningside through a deal brokered by Cushman & Wakefield’s Gary Hyland and Owen Byles.

“As a genuine last mile location close to Brisbane’s CBD, there are very few freehold sites of this scale available,” Mr Hyland said.

“Strong rental growth is being realised in the immediate precinct which is in excess of 11 per cent over the past 12 months, compared to the national average growth of 6.6 per cent over the same period. Coupled with the lowest vacancy rates in south east Queensland at 2.4 per cent, Centennial has secured an institutional-grade land holding that is poised to offer future capital growth in a legitimised, core infill industrial location.”

The cleared site has development approval for a multi-unit estate that will yield ~17,000 sqm of gross lettable area, comprising up to twelve small to mid-space tenancies ranging from 400 sqm to 6,000 sqm across four buildings, with the capacity to house up to ~12,000 sqm as a single user. Construction is expected to start in January with a completion date earmarked for December 2025.

Centennial fast-tracks construction on final stage of Geebung Industrial Park with two new tenants locked in

• Construction of stage one speculative build (16,300 sqm GLA) at Geebung Industrial Park completed one month ahead of schedule
  

• Construction fast-tracked on stage two (~9,010 sqm GLA across three facilities)

• Timber and building supplies giant, Bretts commits to ~7,200 sqm across two existing warehouses in stage two over 10-year lease | lease brokered by Cushman Wakefield’s Morgan Ruig

• Global technology group, Rohde & Schwarz commits to ~2,600 sqm in stage on over 10-year lease | brokered by Gibson Leembruggen of JLL

• The rare, land rich site is located in the northern blue-chip industrial area at 64-88 Brickyard Road, Geebung
  

BRISBANE, QLD: Centennial has accelerated the start of construction on the final stage of its Geebung Industrial Park in Brisbane’s inner north, after completing stage one ahead of schedule and securing two new tenants including longstanding Queensland timber and building supplies group, Bretts.

One of Queensland’s oldest independent businesses established in 1918, Bretts will occupy two existing warehouses spanning around 7,200 sqm that was brokered by Cushman Wakefield’s Morgan Ruig over a 10-year term.

Joining Bretts is global solutions and technology group Rohde & Schwarz, committing to 2,672 sqm of office and warehouse space in stage one, in a deal negotiated by Gibson Leembruggen of JLL also over a 10-year term.

The national fund manager and developer acquired the 6.84-ha land rich site in 2022 for $30m in partnership with global investment house KKR, for its Build to Core Fund.

When stage two is completed in the first half of 2025, the industrial park’s end-value will be in the vicinity of $120m.

According to Centennial’s Head of Institutional Funds, Alex Edwards, the company was delighted with the rapid progress of the Geebung estate’s transformation from an under rented B-grade facility into an institutional grade industrial asset, being built by leading Queensland company, McNab Constructions.

“Stage one was completed a month ahead of schedule in September, enabling us to ramp up construction of stage two, and capitalise on the continued under-supply in the industrial market for well-located, new or modernised tenancies in Brisbane’s inner northern suburbs,” Mr Edwards said.

Centennial springs into action buying prime 6ha industrial infill site in Melbourne’s Bayswater for $44m 

• Centennial secures 6ha prime infill site at 8 Dunlop Court Bayswater for $44m (initial net passing income $1,805,409 p.a.)

• Asset comprises two manufacturing / distribution facilities (~26,300sq m GLA) | 2.4 year WALE | Current tenants are Contitech Australia and Rapid Pacific Roll Covering Pty Ltd

• Site is one of the largest contiguous landholdings in the Bayswater Major Activity Centre – Zoned Industrial 1
  

• The asset will be redeveloped from June 2027 into a multi-tenanted industrial and logistics mid-space estate to capitalise on limited competing stock and low vacancy rate (sub- 1 per cent)
  

• Agents acting for private vendor were Cushman & Wakefield (Chris Jones, Adrian Rowse & Charlie Holmes); and JLL’s (Joel Scully, Jack Kelliher & Ben Hegerty)
  

MELBOURNE, VIC: Centennial is continuing its busy spring buying spree snapping up a rare 6ha industrial infill site at Bayswater, 27km east of Melbourne’s CBD for $44m.

The national fund manager and developer acquired the prominent site at 8 Dunlop Court from a private vendor in a deal negotiated by agents Cushman & Wakefield and JLL. Centennial will add the value-add asset to its Enhanced Value Partnership (EVP) fund.

The acquisition enables the EVP to strategically develop the site, currently containing an older style manufacturing / distribution facility totalling ~26,300sq m of gross lettable area, into a new institutional grade, mid-space industrial estate located within a strongly performing market.

Bayswater is currently experiencing record low vacancy rates at around sub-1 per cent and is also set to benefit from around $38bn of transport infrastructure upgrades currently underway including the Victorian government’s major $16bn North East Link cross city orbital road network due for completion in 2027.

Centennial’s Head of Property Funds, David Cupit said the Bayswater purchase was in line with the fund’s strategy of acquiring core industrial and logistics properties in land constrained markets, close to major transport and infrastructure networks and population growth areas.

“Cushman & Wakefield research shows the eastern industrial precinct remains the most tightly held in the Melbourne market with sub-1 per cent vacancy, and limited redevelopment opportunities of scale available,” Mr Cupit said.

Centennial plans to redevelop the site into a ~32,000sq m multi-tenanted industrial estate when the current two tenants’ leases expire in 2027 to capitalise on the area’s low vacancy rates and acute shortage of new institutional grade stock. 

All signs direct Centennial to Bulimba after securing a prime industrial infill site for $13.1m

• Centennial acquires 9,264 sqm last mile logistics infill site at 59 Taylor Street Bulimba for $13.1m (initial passing yield 5.35 per cent)
  

• Vendor and sole tenant, Albert Smith Signs occupies 4,936 sqm GLA over two buildings

• Sale de-risked with two-year leaseback, triple net rent and fixed annual reviews at 3.5 per cent | site poised for repositioning and redevelopment upon lease expiry

• Estate brings Centennial’s assets in Brisbane’s premier Australia TradeCoast economic precinct to seven assets across 10.74 ha.

• David Gibson and Nick Bandiera of Modus Property Group brokered the sale
  

BRISBANE, QLD: Centennial’s penchant for acquiring prime last mile logistics sites in the country’s tightly held and land constrained infill areas continues to gather pace, with the active fund manager and developer buying a prominent site in Bulimba, 4km from Brisbane’s CBD for $13.1m.

Centennial secured the 9,264 sqm site owned by longstanding signage manufacturer, Albert Smith Signs at 59 Taylor Street, through an off-market deal brokered by Modus Property Group’s David Gibson and Nick Bandiera.

The sale was subject to Albert Smith Signs retaining a two-year triple net lease with a further one-year option. The well-known signage group has been operating from the same location for 35 years, and occupies 4,936 sqm of gross lettable area across two buildings, which could accommodate a range of tenancies, when the leaseback expires and the buildings are refurbished and repositioned.

Centennial’s Head of Property Funds, David Cupit said the income producing asset, acquired on an initial passing yield of 5.35 per cent, was an attractive investment proposition given its strong de-risked cash flows. The asset will be added to Centennial’s Enhanced Value Partnership (EVP) fund, established with JV partner Brookfield in mid-2023.

“The site is zoned General Industry A, offering multiple tenant usages from services to low impact industrial,” Mr Cupit said. “We will draw from our strengths operating in the mid-space industrial and logistics sector to maximise site utilisation and rental returns.”

Investors rush Centennial’s latest ~$20m capital raising for slice of Cleveland Industrial Park Trust

• Centennial secures a 5.6-ha industrial & logistics site for $31.2m in Brisbane’s bayside suburb of Cleveland

• Site acquired through ~$20m capital raising – Cleveland Industrial Park Trust– single asset syndicate, closes oversubscribed in late August
  

• 78 per cent of site leased by anchor tenants Harvey Norman & Barton Motors |19,485sq m total GLA
  • Targeted IRR over 5 to 7 year lifespan between ~14 and ~15 per cent
  

• Sale brokered by Colliers’ Simon Beirne, James Wilkie and Angus Yale and CG Property’s, Michael Callow and Jonathan Burrowes
  

BRISBANE, QLD: Investors have flooded Centennial’s latest closed-end fund, tipping in ~$20m to acquire 100 per cent freehold interest in a 5.6-ha industrial and logistics facility in Brisbane’s bayside suburb of Cleveland, 22km south east of the CBD.

The ~$20m capital raising, named Cleveland Industrial Park Trust, closed oversubscribed with wholesale and high net worth investors drawn to the Trust based on its strong return profile targeting an internal rate of return (IRR) of 14 to 15 per cent per annum and Centennial’s established reputation as an active leasing and asset manager in the mid-space urban industrial and logistics sector.

The national fund manager and developer acquired the site anchored by Harvey Norman and Barton Motors, at 19 Enterprise Street Cleveland for $31.2m from a private vendor in a sale jointly brokered by Colliers and CG Property in late August.

The site was acquired at a 55 per cent discount to replacement cost with an underlying land value of 81 per cent.

Located between Brisbane and the Gold Coast in Cleveland’s industrial precinct, the site presented Centennial investors with a number of compelling factors given its capacity to deliver strong rental reversion, short WALE period of 3.1 years and underpinned by a high underlying land value in one of Queensland’s fastest growing regions.