Centuria acquires $18m Wetherill Park warehouse for wholesale unlisted fund

Australasian real estate funds manager Centuria Capital Group (ASX: CNI) has acquired a second asset for its wholesale unlisted Centuria Select Opportunities Fund (CSOF) – an $18 million warehouse facility in Sydney’s core central western infill industrial market of Wetherill Park.

The off-market acquisition, located at 26 Redfern Street, provides a value-add opportunity for Centuria to capitalise on the property’s remaining lease term in the tightly held west Sydney industrial market, where vacancy has reached a low 0.9%, demonstrating high demand for infill industrial assets and driving strong rental growth.

Jesse Curtis, Centuria Head of Funds Management, said, “CSOF is designed to execute on a counter-cyclical strategy, capitalising on market opportunities to extract outsized returns for investors. This Wetherill Park property provides an opportunity to lean on Centuria’s strong in-house asset management capabilities to achieve compelling re-leasing spreads and rental income in line with the wider infill central western Sydney industrial market.”

The fund has raised $50 million of equity from its Australian wholesale investor network and aims to deploy its capital across the coming 15-month period, targeting a 15% Internal Rate of Return (IRR) across a five-year term. Centuria is co-investing alongside its wholesale investors, demonstrating its belief in the fund’s high-conviction investment strategy.

The asset comprises two freestanding industrial units totalling approximately 4,530 square metres, with a 46% site coverage. Both units feature multiple on-grade roller doors, high clearances, substantial power capacity, and are currently leased to different tenants.

The property’s location, 27 kilometres west of the Sydney CBD and 8 kilometres southwest of the Parramatta CBD, provides superior connectivity and accessibility to the Greater Sydney region, with access to a substantial population of 1.4 million households within a 60-minute drive.

This acquisition builds on CSOF’s seed asset, a $20.6 million industrial logistics facility in southeast Melbourne’s industrial heartland of Keysborough. Centuria manages 27 industrial properties worth approximately $1.3 billion within western Sydney and believes the current Redfern Street warehouses are significantly under-rented compared to its broader portfolio in the area.