Centuria Metropolitan REIT has exchanged contracts for the sale of CMA’s remaining industrial asset, 13 Ferndell Street South Granville. The sale for $24.2 million represents a 17.0% premium to the asset’s last book value and more than $8 million above what it paid Sentinel in late 2014 when it acquired the site.
The purchaser was specialist industrial property investment firm Pipeclay Lawson.
The 15,302sqm warehouse sits on a 2.67-hectare site and is tenanted by the BlueScope Steel with a lease running until 2020. The net rent from the asset is circa $1.5 million a year, representing a yield of around 6.2 per cent.
Colliers International was the selling agent.
Under CMA’s management the asset is expected to deliver an unlevered IRR of 14.5% . The asset was divested to a private fund manager following a competitive onmarket sale campaign. The divestment of CMA’s remaining industrial asset, at a premium to book value, finalises the execution of CMA’s strategy to reposition to Australia’s largest pure play office REIT.