Centuria Industrial REIT's Centuria Property Funds No. 2 Limited agreed to purchase two industrial properties in Australia through a sale-and-leaseback with Arnott's for A$236.2 million.
The fund will acquire 100% freehold interests in the 44,785-square-meter building at 46 Robinson Rd. East in Virginia for A$211.8 million, with an initial yield of 5.8% and a cap rate of 5.00%. It will also acquire the 23,593-square-meter property at 23-41 Galway Ave. in Marleston for A$24.4 million, with an initial yield of 7.4% and a cap rate of 7.25%.
To partially fund the transaction, Centuria Industrial REIT will raise around A$154 million via a fully underwritten institutional placement at an issue price of A$3.41 per unit. It will also set up a A$100 million debt facility with an existing lender to fund the balance of the acquisitions and associated costs.
The trust also noted that the independent revaluation of nine of its existing 46 properties as of Dec. 31 resulted in an increase of A$19.0 million, or a 9.5% rise on prior valuations.
Centuria Industrial REIT also reaffirmed its funds from operations guidance for fiscal 2020 of 19.6 cents to 19.9 cents per unit, which represents a 2%-3% rise from the prior-year period, as well as its distribution guidance of 18.7 cents per unit for the period.