Melbourne

Centuria secures renowned operators in Melbourne industrial hubs

Centuria Industrial REIT (ASX:CIP) has leased two properties in Melbourne’s suburban industrial & logistics markets to well-known operators - caravan manufacturer Regent RV and access solutions specialist dormakaba Australia.

20 Jun 2018

Centuria Industrial REIT (ASX:CIP) has leased two properties in Melbourne’s suburban industrial & logistics markets to well-known operators - caravan manufacturer Regent RV and access solutions specialist dormakaba Australia. 

Regent RV, which is fast becoming one of the biggest players in Australia’s caravan market, has committed to lease a 14,251sqm property at 24 Stanley Drive in Somerton – representing 60% of the building area on site. 

CBRE’s Daniel Eramo, Dean Hunt and Daniel De Sanctis negotiated the five-year lease deal on behalf of Centuria Property for an annual rental of $1.14 million. 

In the second deal, dormakaba Australia has signed a new 10-year lease on the former head office for Mitre 10 at 12-13 Dansu Court in Hallam. 

The group, which will relocate from a nearby site, was attracted to the property’s excellent access and exposure to South Gippsland Freeway, in addition to its modern and substantial office component. 

Located on a site of 11,526sqm, the property comprises offices totaling 3,026sqm over two levels, underground carparking and clearance warehousing with truck access. 

Mr Eramo said the transactions were a strong result for Centuria Industrial REIT and highlighted the ongoing appeal of Melbourne’s core industrial & logistics markets. 

“Lease vacancy in Melbourne’s north continues to be absorbed at a rapid rate, with current vacancy in the industrial market now sitting below 1%. This was highlighted by the deal with Regent RV, with the landlord experiencing no down-time during the process,” Mr Eramo said. 

“We are continuing to see increased demand from the manufacturing sector for prime and secondary buildings, as well as warehousing and logistics operators looking to take advantage of Melbourne’s road network connecting to the eastern seaboard,” Mr Eramo said. 

CBRE’s David Aiello, who negotiated the Dansu Court transaction, said the deal highlighted the shortage of quality stock in Melbourne’s south-east. 

“In a market typified by a rapidly diminishing building supply of 10,000sqm plus facilities – Centuria’s asset was the one existing option that could accommodate dormakaba’s requirement for more than 3,000sqm of office space,” Mr Aiello said. 

“The affordability and timing benefits associated with a brownfield site were key factors that made this a much more compelling option than a pre-lease – particularly in the south-east were industrial land supply for lots in excess of 5,000sqm is at an all-time low.” 
 
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at https://www.cbre.com.