Centennial extends partnership with KKR for new and differentiated industrial & logistics fund

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Centennial extends partnership with KKR for new and differentiated industrial & logistics fund.

  • New Build 2 Core (B2C) Partnership Fund to have $650 million portfolio
  • Fund represents a second, yet differentiated partnership with leading global investment firm KKR
  • Fund has already acquired two seed assets in Queensland and one in Victoria which will have an on-completion value of $201 million

Centennial Industrial & Logistics has once again expanded its footprint within the industrial & logistics real estate sector, following the establishment of a new industrial & logistics fund with a targeted portfolio size of $650 million.

The new fund, known as the Build 2 Core (B2C) Partnership Fund, is backed by KKR, one of the world’s leading investment firms, and continues a relationship that commenced when KKR partnered with Centennial on its earlier Industrial & Logistics Portfolio Fund 1 (CILP1).

The new B2C Partnership Fund will allow the partnership to execute a “differentiated” strategy that will develop and hold a range of warehouse and logistics properties. Three seed assets have already been secured on Australia’s eastern seaboard, including the $39-million Somerton Industrial Park in Victoria, the $30-million Geebung Industrial Park in Queensland, and the $13-million Stapylton Distribution Centre, also in Queensland. In total, the three assets have a combined existing gross lettable area (GLA) of nearly 38,000sqm and a holding income of $2.63 million allowed for staged development. Under Centennial’s investment strategy, which aims to develop these sites to create institutional-grade multi-asset estates, the three sites will be upgraded to an estimated GLA of close to 70,000sqm, with a future value of $201 million on completion.

According to Paul Ford, Centennial’s Executive Director and CEO Industrial & Logistics, there are a number of key drivers that have prompted the establishment of the new and differentiated fund.

“In setting up B2C, we have looked at the growth in e-commerce and related supply chain shifts to infill or last-mile location demand, increasing land constraints, above-trend occupier demand, building obsolescence and urban renewal,” he said.

“The strategy is quite different yet in many ways a natural extension to our existing niche, “mid-space” strategy on which we have executed and have a deep core capability, it is focused on a “niche and under-serviced” sector of the market which leverages our specialist national platform.”

“Overall, this expands Centennial’s national investment portfolio to more than 55 industrial and logistics assets in Queensland, New South Wales, South Australia and Victoria.”

To find out more or to invest today, please visit www.centennial.com.au/b2c.

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