Centuria Industrial REIT (ASX:CIP) sells Eastern Creek asset at 37% premium

Centuria Industrial REIT (ASX:CIP) struck a deal to divest its Eastern Creek asset at a 37 per cent premium to the 31 December 2021 book value of $25.2 million.

The listed property vehicle continues to grow its pipeline despite investors pricing in rising costs and rising interest rates. Australian real estate investment trusts have been vulnerable of late as concerns lie if they’re insulated from the impact of a rising rate environment.

Nevertheless, the divestment of the asset means that Centuria can add further growth by scouting for new development and acquisition opportunities.

Jesse Curtis, CIP fund manager and Centuria head of industrial, said, “divesting of a non-descript asset presents an opportunity to recycle capital into higher yielding strategic acquisitions and developments. The strong premium to book value reinforces CIP’s Net Tangible Asset backing and is demonstrative of CIP’s ability to deliver value to unitholders”.

Shares are trading 0.3 per cent lower to $3.41.