Centuria acquires remaining 50% of 8 Central Avenue
Centuria Property Funds (Centuria), has today announced it has acquired a 50% sub-leasehold interest in 8 Central Avenue, Australian Technology Park (ATP) in the newly formed Centuria 8 Central Avenue Fund No.2. The $110 million purchase gives Centuria full ownership of the building, after it acquired an initial 50% in December 2013.
The Fund is a single-asset syndicate closed-end fund and will provide an attractive return and security of income to investors.
Built in 2010, the property is located 2.5 kilometres south of Sydney’s CBD, in one of Sydney’s key emerging precincts. It is 100% leased with a long-term Weighted Average Lease Expiry (WALE) of 11.0 years by income. Approximately 55% of the gross income is secured to 2029, with major tenants including Pacific Magazines, Seven Network and the NSW State Government.
Jason Huljich, Centuria’s CEO – Unlisted Property Funds, commented: “The property’s strong leasing profile offers investors long-term income security with low leasing risk. It also boasts attractive forecast distributions of 8.50% in year 1 and 8.75% in year 2”.
Mr Huljich went on to say that as the building is only five years old, it has minimal risk of capital expenditure and this is a key draw card for investors looking for a high quality core investment close to the CBD.
“CBD markets currently provide limited acquisition opportunities, coupled with historically low yields. As such, investors are increasingly seeking core office investments in non-CDB markets. The modern construction of the building, it’s generous floor plates of approx. 3,000 sqm and its strategic location in a prime emerging precinct – which is close to Redfern Train Station, the University of Sydney and Sydney Airport – makes this a high quality core investment,” said Mr Huljich.
In addition, Mr Huljich reiterated the site’s appeal to the government sector and the proposed sale of the park as enhancing the long-term benefit for investors.
“The NSW State Government has committed to a decentralisation policy, relocating many of its departments to more cost effective areas outside the CBD. The ATP precinct, where our building is located, already has several government related departments occupying commercial office space reaffirming its appeal to the sector.
“Furthermore, the state government recently initiated a sale campaign for the other assets within the precinct as well as three development sites with the potential to build around 100,000 sqm of new office space. We believe that this further development will position ATP as one of Sydney’s premier commercial hubs within close proximity of the CBD. This will further enhance the future prospects of the precinct for both occupiers and investors alike,” said Mr Huljich.
Mr Huljich concluded that the new Fund will open for investment in early May and any interested Investors should contact Centuria.
For more information or to arrange an interview, please contact:
Unlisted Property Funds – Centuria Property Funds
Phone: (02) 8923 8902 / 0413 121 121
Head of Communications – Centuria Capital Limited
Phone: (02) 8923 8914 / 0435 140 838
Phone: 02 9018 8606/0421 986 328