Centuria Industrial REIT ReValues in wake of Propertylink proposal
Following Propertylink's earlier decision to pursue CIP, the independent board obtained new valuations for 100% of the portfolio. The portfolio’s weighted average capitalisation rate has reduced by 23bps from 6.77% to 6.54% resulting in an overall revaluation gain of $36.85m. The Pro-forma Net Tangible Assets (“NTA”) per unit has increased by 5.1% to $2.69.
Centuria have also been active in its acquisitions and re-leasing activities completing a large number of deals over the last quarter.
Whilst Propertylink have dropped their proposed take over of CIP, it is possible that ESR or other parties may now pursue the REIT. Prior to Propertylink's Offer, Propertylink acquired a 12% stake in Centuria which presumably will rests in the hands of ESR, assuming the ESR proposal completes. To help defend against a future takeover by ESR, Centuria Capital took a 19% stake in PropertyLink which may pressure ESR to negotiate with Centuria in order to take full control of Propertylink.