Centuria Sandgate Road Fund Print


A-Grade office asset with rental income underpinned by government leases



Weighted Average Lease Expiry
9.4 years

81% of income underpinned by QLD state government owned tenants

Initial gearing of less than 45%

 

Investment Rationale

  • A long WALE of 9.4 years and 81% of gross income underpinned by QLD state government owned tenants.
  • A modern A-Grade office building constructed in 2012 with 12,980sqm of NLA.
  • 4.5 star NABERS energy rating and minimal forecast capital expenditure required.
  • Forecast growth in the QLD economy plus a limited office supply pipeline expected to result in declining office vacancy rates.
  • Nundah is strategically located between the Brisbane CBD and Airport, with high quality retail amenity and direct access to road and rail infrastructure.

 

Offer Summary

Offer opens 22 May 2017(3)
Offer closes Once fully subscribed(3)
Minimum investment: $50,000(4)
Minimum offer amount: $68.4 million


Investment Structure

Investment type Single asset, closed end, unlisted property fund
Initial term 6 years
Distributions Paid monthly
Initial gearing Less than 45%

1.  Returns in FY18 will be from the date of settlement (expected to be 7 July 2017) to 30 June 2018.
2.  Forecast returns are predictive in nature and are calculated in accordance with a number of underlying assumptions set out in the Product Disclosure Statement. As such, returns may be affected by incorrect assumptions or by known or unknown risks and uncertainties and may differ materially from results ultimately achieved. Returns are not guaranteed.
3.  Settlement of the property is expected to occur in 7 July 2017.
4.  Centuria reserves the right to accept lesser amounts.

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Nundah – 
A thriving metropolitan centre located along road and rail infrastructure, less than 10km from the Brisbane CBD.

 

Asset Summary

Address 1231 Sandgate Road, Nundah, Brisbane QLD
Built 2012
Purchase price $106.25m
Independent Valuation $108.00m
Title Freehold
WALE (by income) 9.4 years
Occupancy 100%
Initial gearing Less than 45%
NLA 12,980sqm
Floor plates 1,537sqm-2,150sqm
Car parking 144 spaces
NABERS energy rating 4.5 stars

All figures are as at 1 July 2017 unless otherwise stated.

 

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Risks
All investments in unlisted property funds carry risk. As the Fund invests in commercial property it carries the market and property risks associated with investing in property. As a geared investment, the Fund also carries associated financial and leverage risks. Risks can impact on distribution and capital returns over the term of the Fund. It is important that you read the Product Disclosure Statement and understand the risks of investing. 


Disclaimer: Issued by Centuria Property Funds Limited ABN 11 086 553 639 AFSL 231149 (Centuria) is the responsible Centuria is the responsible entity of the Sandgate Road Fund (Fund) (ARSN 618 152 702) and will issued units in the Fund. A Product Disclosure Statement (PDS) for the Fund is expected to be released on 22 May 2017. This information is general information only and does not take into account the objectives, financial situation or particular needs of any person. You should consider whether this information is appropriate for you and consult your financial or other professional advisor before investing. You should obtain and read a copy of the PDS relating to the Fund before making a decision to invest. Centuria and its associates will receive fees in relation to an investment in the Fund as disclosed in the PDS. Investment in the Fund is subject to risk including possible delays in payment or loss of income and principal invested. Centuria does not guarantee the performance of the Fund. CA-CPFL-20/03/17-00508