Centuria’s Diversified Property Fund acquires its fourth direct property – expanding AUM to over $200M

28 November 2019
  • CDPF acquires 13-15 Compark Circuit, Mulgrave Victoria for $27.8m
  • Fourth direct real estate acquisition of the Fund. Settlement anticipated early 2020
  • Two freestanding, A-Grade quality office buildings with a total site area of 8,334 sqm with a combination of on-grade and basement car parking totalling 226 spaces
  • Centuria Capital Group’s (ASX:CNI) platform benefits from strengthening its unlisted investment options

13-15 Compark Circuit is located within the heart of the Monash Office and Technology Precinct, one of the largest office precincts outside the Melbourne CBD. The precinct is home to several significant facilities and a highly skilled local workforce. The property is a 100% leased A-Grade quality suburban office asset with a 4.0-star NABERS energy rating and a 3.3-year WALE underpinned by a strong tenant mix with multiple long-term tenants. The deal was brokered by agents Tom Ryan and Tim Grant from Knight Frank and Andrew Dawkins and Chris Jones from Dawkins Occhiuto.

The Monash precinct contributes AUD $9.4 billion to the Victorian economy each year, supports more than 13,000 businesses and employs more than 82,000 people.1 The location offers excellent connectivity to the Princes Highway, Monash Freeway and Eastlink – the major arterial roads connecting South East Melbourne.

Commenting on the purchase, Doug Hoskins, Fund Manager of the Centuria Diversified Property Fund said “We are delighted to add this fourth acquisition to our portfolio. This is the Fund’s first acquisition in Victoria, further broadening the geographic and asset diversification for the Fund and its investors”.

“Commercial real estate remains an attractive opportunity and we believe this acquisition is well positioned to retain and attract the long-term quality tenants that contribute to sustainable income streams.”

Centuria’s joint CEO Jason Huljich added “Centuria continues to source compelling unlisted opportunities in a low-term deposit and low-rate environment. This fourth acquisition for CDPF closely aligns to the Fund’s strategy – to increase its balance of direct property exposure.

“CDPF aims to offer direct property investment with a minimum investment of only $10,000. The Fund is open-ended, offers limited monthly liquidity,2 and sits on a number of platforms, so it is easy for advisers and investors to access.”

About this property

The Property comprises two freestanding, A-Grade quality office buildings on separate titles with a total site area of 8,334 sqm. The buildings are currently configured to accommodate four tenancies with a total NLA of 5,851 sqm. The buildings were completed in 2006 and offer modern office accommodation over two levels, with a combination of on-grade and basement car parking totalling 226 spaces (1:39 sqm of NLA). The accommodation has excellent natural light with glazing to four sides and the location of the foyers and amenities enable efficient subdivision of floors if required.

The Property is 100% occupied with a 3.3-year WALE and has a strong tenant profile, including Tyco / Johnson Controls (NYSE), PZ Cussons (LSE), Service Stream (ASX) and Carter Grange (local home builder). The Property has a 4.0-star NABERS energy rating and is well serviced by local amenity. Settlement is scheduled to occur in February 2020.

About Centuria

Centuria Capital Group (CNI) is an ASX-listed specialist investment manager with $6.7 billion3 of assets under management. We offer a range of investment opportunities including listed and unlisted property funds as well as tax-effective investment bonds. Our drive, allied with our in-depth knowledge of these sectors and intimate understanding of our clients, allows us to transform opportunities into rewarding investments.

1 Victoria Planning Authority in 2017

2 Redemptions are limited to the terms detailed in the PDS and are subject to CDPF’s liquidity policy