Centuria Industrial REIT sold its entire 7.7% shareholding in Propertylink at a per-security price of A$1.01, bringing in total proceeds of A$46.3 million.
The divestment, which delivered a 13.3% yearly internal rate of return to the seller, will yield A$1.9 million in profit for Centuria. The interest sale was carried out at a premium over the price of 95 Australian cents per security that the trust paid to buy the stake in September 2017, according to a release.
Proceeds from the stake sale will be used for Centuria's planned acquisition of a 13,763-square-meter warehouse facility at 616 Boundary Rd. in Richlands in the Australian state of Queensland for A$15.9 million and potentially, for the purchase of an industrial property in Western Australia.
An 8.2% initial yield is anticipated from the Richlands facility, which sits atop a 3.1-hectare site. Its off-market purchase, expected to be settled mid-August, will include a three-year sale-and-leaseback deal with logistics company Border Express.
Centuria is also conducting due diligence on the Western Australian property. It added in the release that the funds intended for the asset's purchase will be used for debt reduction if the acquisition does not go through.