You are now leaving Centuria Australia
and entering Centuria New Zealand.
As a commitment towards having responsible business practices, Centuria aims to create investments that have positive impacts and to have the right processes in place to equip the organisation to act responsibly and in the best interest of its stakeholders. The Group continues to expand upon its ESG priorities and seek ways to integrate ESG measures into its management and investment policy.
Respective fund boards have the authority to integrate ESG measures into their investment approaches. These are communicated to the ESG Management Committee, who then report to the Culture and ESG Board Committee. All key changes to investment approaches need to be reviewed by Centuria Capital Group’s Board.
This year, the Centuria Capital Board approved the Group’s ESG Policy. This Policy sets the expectation for Centuria the Group to consider material ESG themes as part of their investment approach and day to day operations. By understanding the diversity of the Group by asset class and fund structure, both Centuria Industrial REIT and Centuria Office REIT have rationalised this into their own ESG investment approaches, approved by their respective Responsible Entity Boards.
Following the ESG Policy and Sustainability Framework endorsed by the organisation, CIP and COF have identified ways to embed ESG themes into their investment approach. The key objectives for each of the listed REITs include:
|Centuria Industrial REIT||Centuria Office REIT|
|Portfolio construction||A portfolio of quality Australian industrial assets diversified by geography, sub-sector, tenants and lease expiry.||A portfolio of Australian office assets diversified by geography, tenants and lease expiry.|
|Active management||Focus on ‘fit for purpose’ assets that align to the needs of CIP’s quality tenants to achieve high retention and occupancy.||Primarily focused on maintaining occupancy and extending portfolio WALE.|
|Capital management||A robust and diversified capital structure with appropriate gearing.||A robust and diversified capital structure with appropriate gearing.|
|Value creation||Continue to enhance the portfolio and improve asset quality where practical.||Continue to enhance the portfolio and upgrade asset quality.|
A summary of how ESG themes are integrated into various investment stages are provided here:
|Asset acquisition – due diligence|
|Active management approach – day to day asset management|
|Risk management, reporting and governance|
|Funds management and corporate|
Centuria has continued to expand Centuria Agriculture Fund’s (CAF) portfolio in alignment with its goal to appeal to investors wishing to access high quality agricultural investments, leased to reputable operators with strong ESG credentials. This year the we added two more assets to CAF’s portfolio, growing to three properties worth $320 million AUM. Our total agricultural assets under management increased to $500 million.
CAF secured the $70 million Sundrop farm asset in December 2022, which encompasses a 20 hectare glasshouse facility that produces truss-loose, truss-prepack and baby plum tomatoes and accounts for approximately 14% of Australia’s truss tomato market¹. The facility incorporates modern renewable energy, heating and irrigation sources and receives up to 30% more winter sunlight than other glasshouses around Australia¹. These strong ESG credentials resonated well with the Group’s sustainability framework and the values of CAF.
1. Source: Independent Knight Frank Valuation Report, November 2022.