Core Property has reviewed the Centennial Industrial and Logistics Opportunistic Fund (ILOF), a recently launched fund by Centennial that invests in a mix of Core Plus to Value-Add, mid space industrial and logistics assets in land constrained, infill, urban locations.
The Fund aims to capitalise on Centennial’s industrial expertise and track record by targeting mid space/urban industrial and logistics properties which have the potential for strong earnings and valuation upside. The Fund is acquiring 4 seed assets for $94M in key industrial locations, with the Manager targeting to build this up to $700M during the first 2 years of the Fund.
The Fund’s majority investor, global asset manager Brookfield, will have an 81.8% holding in the Fund. Investors are being offered the opportunity to invest in up to 13.6% of the units through the issue of 45M units at $1.00 per unit. Centennial management will also invest in 4.5% of units.
The Fund is a total return fund, with the Manager targeting an IRR of 13% - 14% p.a. over a term of 5-7 years.
The Fund is open to wholesale investors only with a minimum investment of $500,000.
Core Property has rated the Fund as RECOMMENDED.