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Centennial Industrial and Logistics launches its latest Enhanced Value Fund – to provide larger scale access to industrial and logistics assets in major cities for smaller to medium size investor groups

Invest / Direct Property Funds

Australia

May 11 2019

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The Centennial Industrial and Logistics (CIL) launches its latest Enhanced Value fund will follow on from the success of the CIL I and CIL II funds which currently own 6 industrial and logistics properties across Brisbane and Melbourne totalling around $90 million in value. 

In short

  • The new fund will continue to invest in a similar mix of core and value add assets within the industrial and logistics sector albeit on a larger scale, in terms of overall fund size. 
  • The fund aims to provide secure income streams and attractive potential value upside through proactive leasing and improving land use and based on CIL’s previous performance 
  • The portfolio’s structure is designed to be flexible and will only invest major cities around Australia with a targeted total Internal Rate of Return (IRR) of 10% to 12%, inclusive of a targeted income, and growth distribution of 6.5% to 7% over a 3 to five years. 

Quality seed asset already acquired

CIL has recently finalised its first asset for the fund. The Brooklyn Distribution Park is a fully leased industrial and logistics park located in the highly sought after inner western suburb of Brooklyn. The property features a substantial main road landholding improved by five freestanding industrial buildings and cafes. It is currently fully leased with high quality tenants and strong income potential.

Why MP likes the new CIL enhanced fund

MP Funds Management likes this new Enhanced Value Fund based on the following: 

  • CIL’s strong track record with managing assets and delivering returns
  • The Fund’s allocation to traditional industrial and logistics assets which have potential upside based on ‘urban renewal’ or rezoning and/or potential “last mile” demand.
  • It’s selection of medium-to- longer term WALE assets with lower risk and strong functional income potential
  • Mixture of core and value add assets – development will not represent more than 15% of the portfolio’s Gross Asset Value (GAV)
  • Assets in prime, typically land constrained locations within close proximity to major infrastructure. 
  • Potential to have a balanced geographic exposure predominantly along the eastern seaboard
  • CIL are committing to a minimum co-investment of $2.5 million to the fund.

Early access for CPG investors

Existing CPG investors are entitled to request early allocations to this new fund, before release to the broader market. CIL are also committing to scalebacks on allocation requests from existing investors received before 30 April 2018. 

 

Like to know more?

 

KIM KITCHEN

Director Marketing & Distribution

E: kkitchen@centennial.com.au

T: +61 2 8277 6603

M: +61 411 812 818

 

PAUL FORD

Executive Director

E: paulf@centennial.com.au

T: +61 2 8277 6688

M: +61 414 722 347

 

JONATHAN WOLF

Executive Director

E: jwolf@centennial.com.au

T: +61 2 8277 6607

M: +61 422 004 430

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