Centuria Property Funds Limited (“CPFL”) as Responsible Entity for the Centuria Metropolitan REIT (“CMA”) advises that CMA has entered into an unconditional contract for the sale of 14 Mars Road, Lane Cove, to the incumbent tenant, Cochlear Limited for $26.0 million.
The contract provides for settlement to occur on or before 31 March 2017 at CMA’s election. CMA intends to use the proceeds from the sale to reduce debt pending identification of a suitable reinvestment opportunity.
Disposal of the asset does not materially impact CMA’s FY17 earnings and therefore guidance is reaffirmed within the range of 18.7 to 19.0 cents per stapled security.
Based on the proposed timing of settlement, the asset will have generated a 20.9% premium to the 30 June 2016 book value and a property IRR of 23.8% since CMA’s listing in December of 2014.