• Located at 204 Bannister Road, Canning Vale, WA
  • Estimated value at completion of $31 million
  • Vacancy rate in Perth 0.9%

Centuria Industrial REIT (ASX: CIP) has opened its new industrial facility in Canning Vale, WA.

Located at 204-208 Bannister Road, the 2.5 hectare brownfield development was secured off-market by Centuria in June this year. The asset was valued at $10.1 million in CIP’s Property Compendium FY22, with an estimated value on completion of the asset of approximately $31 million.

Centuria said it will develop 204-208 Bannister Road into a 12,300 square meter institutional quality dual tenancy facility, comprising an 8,600 square meter tenancy and a 3,700 square meter tenancy.

The warehouses will include a 13.7m clearance, an ESFR sprinkler system, multiple ground level doors, recessed loading docks, a rigid container rack and corporate offices. The asset will also be scalable for the installation of a 38m super awning on the largest industrial unit.

The building is also aiming for a five-star Green Start rating. Initiatives include a solar photovoltaic system, recycled water, electric forklift charging stations, sustainable and recycled building materials, and drought-tolerant native vegetation, among others.

Perth’s good rental conditions reflect a low vacancy rate of 0.9%, according to Colliers’ Research from September 2022, which is driving exceptional rental growth of 19.6% year on year in the main market – the second largest growth rents recorded in Australia, according to JLL Research October 2022.

Added to these conditions is a new limited supply of only 55,900 m² of development currently under construction and which will hit the market by mid-2023, of which 47,350 m² are already pre-committed.

Jesse Curtis, CIP fund manager and industrial head of Centuria, said: “Perth’s basic and limited-supply industrial market offers a tremendous opportunity to capture strong tenant demand from the booming e-commerce and corporate sector. looking to increase their offshoring capacity to avoid supply. chain break.

“CIP is looking to further increase its exposure to various industrial markets in Western Australia and this development provides an opportunity to capture rental growth. Importantly, we have selected a dual tenant sustainable design configuration to meet the demand for last mile urban infill industrial facilities. »

Jesse Curtis, CIP fund manager and head of Centuria’s industrial division

Jesse Curtin. Picture provided.

Andre Bali, Centuria’s Head of Development, added: “We have a strong track record of delivering high quality, market-leading industrial developments across Australia, most recently in New South Wales, Queensland , South Australia and Victoria.

“As the development market currently faces challenges, such as access to quality sites, increasing costs and funding, supply chain and resource constraints, Centuria and CIP continue to find value-added development opportunities for our investors.

“For all of our industrial developments, we aim for a minimum rating of five green stars to ensure that our tenants have a future-proof and highly sustainable property that aligns with Centuria’s broader ESG mandate. . »

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