Coles in SW selloff, Centuria buys warehouse

Coles has completed a $45 million asset selloff in Western Australia's South West, while ASX-listed property investment fund Centuria has acquired an industrial property in Canning Vale for $18.1 million.

The supermarket chain’s asset sale comprised shops in Albany and Vasse, as well as a Coles Express petrol station in Vasse.

Business News reported in January that Coles Vasse was sold to a Chinese family for $19.6 million, while commercial agents CBRE today said a Victoria-based doctor bought the petrol station for $2.72 million.

Coles Orana in Albany was acquired by a Queensland-based development group for $22.8 million.

CBRE’s Richard Cash and Anthony Del Borello managed the sales campaign for all three properties.

Mr Cash said wide-ranging buyer interest highlighted the appeal WA property to investors.

“With demand outstripping supply and driving up prices in many east coast locations, investors being priced out of assets in their own state are looking to capitalise on WA’s attractive investment fundamentals,” he said.

Meanwhile, Centuria announced to the ASX today that it had purchased an 11,067 square metre freestanding logistics warehouse at 16-18 Baile Road.

Following an expansion last year, the property is leased to DHL with a weighted average lease expiry of 4.5 years.

The settlement of the acquisition is set to occur in March, and the property will provide an initial yield of 7 per cent.

Centuria Industrial REIT fund manager Ross Less said the acquisition of the property was consistent with the fund’s strategy to invest in fit-for-purpose, quality assets in established strategic locations and introduces a high quality tenant its portfolio.

Shares in Centuria were down 0.77 per cent to trade at $1.29 each.