Gain access to metro industrial property assets through an investment in a fund.
If you’re looking for the potential for both regular income and capital growth, as well as a way to diversify your portfolio, investing in the industrial property sector could be a great option.
Demand for metro industrial and logistics and last mile property has increased off the back of growth in e-commerce, logistics and infrastructure investments.
The Australian economy has proven resilient and is well placed to benefit from strong growth into 2028, which is expected to further benefit the industrial real estate sector.
MANAGER TRACK RECORD
MANAGEMENT
IRR FOR SOLD PROPERTIES
*As at May 2025
WHY INVEST IN INDUSTRIAL
What makes industrial property an attractive investment?
There are several key reasons investing in industrial property could be a good opportunity.
One of the biggest attractions of industrial property is the potential for steady, reliable cashflow. Industrial tenants, especially large e-commerce and distribution businesses, can sign long-term leases that can span decades. This potential for steady cashflow can be a significant draw for investors seeking income.
- Growing tenant demand for industrial property assets is high and forecast for continued growth
- Longer lease terms than residential (generally at least three years, or more)
- Property location can be used as lever to control other costs - increase in value over time. Additionally improving the property, creating value.
METRO INDUSTRIAL + LOGISTICS
What's driving industrial appeal?
Australia’s industrial property sector has demonstrated remarkable resilience and growth, solidifying its position as a cornerstone of the nation’s commercial real estate landscape.
Metro critical to supply chain
Transport costs account for 45-70% of total logistics costs, with metro logistics centres allowing companies to reduce their transportation overheads by being situated closer to the end customer.
Population growth
Australia is forecast to have the fastest growing population of all developed economies, requiring 8.70m sqm of additional industrial space to service this growing population over the next 3 years to 2028.
eCommerce
Australia is forecast to have an eCommerce penetration rate of 15.3% by 2028, rising from 12.8% at Q4 2024.
Leasing demand
Warehouse space under 10,000 sqm accounts for over ~77% of leasing activity from 2024 YTD (by number), with embedded demand from tenants currently occupying obsolete product.
Land constraints
Last mile land supply is extremely limited across all states, with stock being withdrawn for higher value purposes (e.g. residential), increasing the value ofexisting last mile logistics assets.
Fundamentals driving rental outperformance
Mid-space, infill markets have historically delivered stronger rental growth with 16.5% YoY growth compared to 9.1% for non-infill markets. This is consistent with historical rates with a 19.0% CAGR for infill markets compared to 13.5% in the broader market across the East Coast.
Source: Cushman Wakefield Research
ABOUT THE MANAGER
Why Centennial?
Centennial is a specialist investment manager, delivering superior and sustainable real estate outcomes.
Centennial has a proven track record, with a current portfolio of $2.6bn across office, industrial, retail and mixed-use sectors.
We have built a specialist industrial + logistics platform focusing on the Metro Industrial + Logistics market with in excess of ~$1.4bn of assets under management and a robust development pipeline.
We invest alongside our investors, with an average Internal Rate of Return (IRR) across sold assets of ~21%.
A demonstrated hands-on-approach with a dedicated on the ground team, to actively manage our assets, enhancing our tenant customer experience and adding long-term value for our investment partners.
*As at May 2025
WHAT OUR INVESTORS SAY
INVESTMENTS
Recent Opportunities
- Metro Industrial+Logistics
Cleveland Industrial Park Trust | Jul-2024
Overview
The Trust acquired a large industrial land holding of 23.2 ha of usable land, with substantial embedded rental reversion at a significant 55% discount to assessed replacement cost.
With a low 39% site cover, below market rents and 22% vacancy, there are multiple value enhancing strategies and exit pathways.
- Metro Industrial+Logistics
Warrego Industrial Park Trust | May-2024
Overview
The Trust acquired a large industrial land holding of 23.2 ha of usable land, with substantial embedded rental reversion at a significant 24.5% discount to the market value of the underlying land.
With limited land supply of large allotments, the site provides an opportunity to create an open air estate, whilst bringing the rents to market (54% below market at acquisition).
- Retail
Hinkler Central Trust | Nov-2023
Overview
Hinkler Central is a dominant sub-regional shopping centre, anchored by strong performing Coles, Woolworths & Kmart, who are all paying turnover rent.
Hinkler Central provides the opportunity to increase the largely defensive (non-discretionary) rents along with strategic value add opportunities.
Register your Interest
Thank you for your interest in Centennial. Fill in your details and we’ll get back to you shortly.
Please note that we are only able to accept investors who are ‘Wholesale Clients’ under the Corporations Act 2011 (Cth).
This part of Centennial Property Group’s website has been prepared by Centennial Property Group Pty Ltd (ABN 26 151 746 977) and Centennial Financial Services Pty Ltd (ACN 162 617 843, AFSL 436802) (together Centennial). It does not take into account your objectives, personal circumstances or needs. Nor is it an offer of securities. The information memorandum for the relevant financial product will contain full details of the terms and conditions of investment and should be read in full, particularly the risk section, prior to lodging any application. All investments involve risk and can lead to loss of your capital or diminished returns. Centennial is only licensed to provide general financial product advice about its products and recommends that after you receive the information memorandum for this financial product, you seek advice on the suitability of the investment outlined in this document to your objectives, financial situation and needs from your professional advisers.
