Insights

Centuria (ASX:CIP) share price rises as a new development announced

The Centuria Industrial REIT (ASX: CIP) share price is gaining after the REIT announced it has bought a property and will build an industrial estate.
The post Centuria (ASX:CIP) share price rises as a new development announced appeared first on The Motley Fool Australia. –

asx shares for housing boom represented by row of miniature white paper houses with one red house

Centuria Industrial REIT (ASX: CIP) shares are gaining today on the back of a new property purchase. At the time of writing, the Centuria share price is $3.49, up 0.87% on yesterday’s close.

Let’s take a closer look at the news released by the industrial real estate investment trust this morning.

New industrial estate

Centuria has acquired an 8-hectare parcel of land in Dandenong South, near Melbourne, on which it plans to build a six-asset industrial estate.

The land has cost Centuria $26.3 million and the company will be spending another $62.5 million to build on it. Centuria estimates the end value of the estate will be $88.8 million. The project is expected to be practically completed by 2022 and will be funded through the company’s existing debt facilities.  

The finished product will be made up of units with areas from around 3,400 square meters to around 13,600 square metres. They will cater to a range of industrial tenants. The development’s total gross lettable area will be around 40,400 square metres.

Centuria hopes that, on completion, the development will achieve a ‘Design & As Built’ five-star green rating from the Green Building Council of Australia. It will incorporate sustainable features such as solar panels, recycled water, sustainable and recycled building materials and native vegetation.

According to Centuria, vacancy levels in the industrial market of the Melbourne suburb are around 1%.  

The estate will be built in partnership with commercial and industrial property developer Cadence Property Group. It will be constructed by Texco Construction.

The new property adds to the company’s 7 existing assets in southeast Melbourne. The purchase has increased Centuria’s portfolio to 63 assets which, when combined, will be valued at $2.7 billion on completion.

Commentary from management

Centuria’s fund manager Jesse Curtis commented that the acquisition is an opportunity to secure an asset in a market where industrial properties are rare: 

The asset builds [Centuria’s] value-add pipeline and delivers brand new industrial product to the portfolio creating further value for unitholders…

The site is set to benefit from the newly announced Dandenong South Inland Port, enabling direct containerised freight from the port of Melbourne which is expected aid in leasing demand.

Centuria share price snapshot

The Centuria Industrial REIT share price is having a good run on the ASX as of late.

Currently, it’s up 12% year to date. It’s also up 32% over the last 12 months.

The company has a market capitalisation of around $1.9 billion, with approximately 551 million shares outstanding.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Centuria (ASX:CIP) share price rises as a new development announced appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!