Centuria acquires $115 million Geelong building, growing AUM to $4.5 billion
Centuria Capital Group (ASX: CNI) is pleased to announce that its subsidiary, Centuria Property Funds Limited, has today unconditionally exchanged contracts to acquire 60 Brougham Street, Geelong, Victoria for $115.25 million.
The property will be acquired by the Centuria Geelong Office Fund, a new single asset unlisted property fund which will be launched in February 2018. On settlement, total Centuria assets under management (AUM) will be $4.5 billion.
The A-Grade building is 100% occupied, with 94% of its income underpinned by a long-term lease to AAA-rated Victorian State Government entity, the Transport Accident Commission (TAC).
Centuria’s property funds management business is led by Jason Huljich. Following a management restructure late last year, Mr Huljich is now responsible for both listed and unlisted property, the property services business, property acquisitions and disposals and special property and debt opportunities.
With the new Geelong fund enjoying a 10-plus year lease to a State Government tenant and a starting distribution of 7% p.a. paid monthlyi, Mr Huljich expects strong demand from Centuria’s investors.
“The building is centrally located in the thriving regional city of Geelong, which is benefiting from the relocation of a number of Government agencies, including WorkSafe and the National Disability Insurance Agency.
“The acquisition complements our investment philosophy and offers reliable, long term income for investors.”
The acquisition caps off a busy first half of FY18. With around $655 million of quality, investment grade property assets already acquired, Centuria is proving to be one of the most active and fastest-growing fund managers in its peer group.
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i. Important information
The property at 60 Brougham Street, Geelong is intended to be offered for investment as a registered managed investment scheme. The forecast distribution in year one is correct as at 11.01.2017 and is subject to a number of assumptions. Forecasts and underlying assumptions Forecast returns are predictive in nature and are calculated in accordance with a number of underlying assumptions will be confirmed in the PDS that will be issued for the product. 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. Forecasted annualised distribution yields are for the period 1 April 2018 to 30 June 2018.
Centuria Property Funds Limited ABN 11 086 553 639 AFSL 231 149 (Centuria) has applied to the Australian Securities and Investments Commission to register the Centuria Geelong Office Fund as a registered managed investment scheme and will be the responsible entity of the scheme. The PDS for the scheme is expected to be available in late January / early February 2018 and will be available from this website.
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. Centuria and its associates will receive fees in relation to an investment in the Fund. Centuria does not guarantee the performance of the Fund.