381 Macarthur Ave Hamilton

381 Macarthur Ave Hamilton is an A-grade commercial office building constructed in 2018 and located in the heart of Hamilton’s growth precinct, approx 6km north of the Brisbane CBD. Hamilton has rapidly become one of the city’s premier business and lifestyle locations.

Driven by a strong economy, a fast growing population, and unprecedented infrastructure development, Brisbane and Queensland offers investors with a premium yield and growth opportunity over other major CBDs.

Current leasing opportunities

Suite/LevelArea
(sqm)		Rent (per sqm p.a. + GST)TimingCommentFloor Plan
Suite 103301$450ImmediateSpace featuring brand new fitout including reception, meeting room, boardroom, booth, kitchen / breakout and an open plan area featuring 30 workstations.View floor plan

Outgoings: Tenant to pay increase in outgoings over the base year.
Figures exclude GST or government levies. Areas are indicative only.

Contact

Colliers
Level 30, 111 Eagle Street
Brisbane QLD 4000		Will Cooper
T: +617 3370 1757
M: 0431 024 627
E: Will.Cooper@colliers.com
Bo Veivers
T: +61 7 3370 1760
M: 0405 497 808
E: Bo.Veivers@colliers.com
Centuria
Level 41, Chifley Tower
2 Chifley Square
SYDNEY NSW 2000		David Schmidt-Lindner
T: (02) 8923 8954
M: 0415 447 653
E:David.Schmidt-Lindner@centuria.com.au
  • Jason Huljich appointed joint CEO, alongside John McBain who remains in a full-time capacity as joint CEO
  • Ross Lees appointed Head of Funds Management

Centuria Capital Group (Centuria ASX: CNI) has announced two internal promotions effective 21 June 2019.  Jason Huljich, previously Head of Real Estate and Funds Management, will join John McBain to co-lead the Group.  Ross Lees, previously Fund Manager, Centuria Industrial REIT (ASX: CIP), will assume Jason Huljich’s previous role as Head of Funds Management for the group.

Centuria Capital has experienced rapid growth with assets under management now exceeding $6.0 billion*. This is in line with the Group’s strategy to grow into adjacent sectors which are a good fit with existing capabilities. In order to enable continued growth, the Board has a long-term strategic plan that includes developing leaders and building additional depth to its senior management team.

The appointments are announced as Centuria officially opens new offices in Chifley Tower to accommodate its growth. This growth includes Centuria’s move into healthcare real estate in April 2019 with the acquisition of a controlling stake in Heathley. It also entered into the social and affordable housing sector, via its agreement with the Government’s National and Affordable Housing Agreement and the NSW State Government’s Social and Affordable Housing Fund in June 2019. And additionally, in 2018 the Group successfully completed capital raising to fund the acquisition of $645 million of assets from Hines Global REIT, Inc.

As a founder Jason Huljich has worked alongside John McBain for twenty-one years, influencing and implementing the strategy. The joint CEOs believe that continuing their successful partnership will best allow the Group to execute on its ambitions and deliver value.

Centuria Capital Chairman, Garry Charny notes that “Jason is part of the DNA of Centuria and this promotion has been championed by his co-founder and joint CEO, John McBain. The Board could not imagine two better stewards of the company in the years ahead and to continue its growth and successes for the benefit of all securityholders.”

John McBain congratulated Jason Huljich and Ross Lees on their appointments, adding: “Centuria has a strong commitment to promote from within. Ross has made a strong contribution in his current role and will ably support both Jason and I in the execution of our growth strategy. Ross continues in his CIP role pending finalisation of the appointment of a new CIP fund manager.”

Mr Charny concluded, “With a clear strategy, a reinforced management structure and growing investor support, Centuria is well positioned for the future.”

*assuming completion of the Heathley Limited acquisition

  • Centuria has sold an A-grade office building in Brisbane’s inner-city suburb of Cannon Hill for $36.95m
  • The expressions of interest campaign generated strong demand, resulting in 9 offers
  • A total return of 109% was generated for Centuria investors.

Centuria Property Funds Limited (Centuria) has sold 19 Corporate Drive in Cannon Hill, an A-grade office building in Brisbane’s inner city, for $36.95 million following a campaign that generated strong buyer interest.

Completed in 2008, the two-level commercial building comprises 6,028 sqm of A-grade office accommodation strategically positioned six kilometres from the Brisbane CBD in the tightly-held Southgate Corporate Park.

Head of Real Estate and Funds Management, Jason Huljich commented “The property was originally purchased in December 2012 for $23.30 million and the Fund’s investment rationale since commencement was to provide investors with stable, high yielding and diversified income returns from a quality commercial office property situated in one of Brisbane’s most prominent growth corridors.

“The Fund has yielded an average income return to investors of approximately 10.3% p.a. over the six and a half years. This is an excellent result for all investors in the fund.”

The sale was negotiated by Matt Barker, Justin Bond and Christian Sandstrom of Knight Frank, along with Anthony Ott and Peter Chapple of Savills.

Sydney-based syndicator Aviator Capital was the successful buyer. It was Aviator’s third acquisition within the Brisbane market.

Centuria and BlackRock’s Zenith office towers in Chatswood

  • Centuria and BlackRock sell The Zenith for $438.2 million
  • Over 40,000 sqm leased during ownership period (58 deals)
  • WALE extended by 80%

Centuria Property Funds Limited (Centuria) and a private fund managed by global investment manager BlackRock today announced the sale of their jointly-owned Zenith office towers in Chatswood.

Whilst it was originally intended that the property be held over a longer period, buyer interest in the property resulted in an acceleration of the exit. Demand was extremely strong, with ten offers received for the asset, and according to Centuria’s Head of Real Estate and Funds Management, Jason Huljich, the sale price is an outstanding result, reflecting the general strength of the market and Centuria and BlackRock’s asset management strategy in enhancing the yield on the property.

Centuria’s 50% share of The Zenith is owned by investors in the single-asset, unlisted Centuria Zenith Fund, which will be wound up and proceeds distributed to investors, after the sale settles. BlackRock’s interest was held in a private real estate fund that it manages on behalf of its investors.

“Income returns from the Centuria Zenith Fund have been excellent, on average 7.7% p.a., which is very attractive in the current low interest rate environment.”

“The strong sale price achieved from The Zenith offers more proof of our ability to identify opportunities in strengthening markets, which allow us to implement our active asset management strategy to make our properties more attractive workplaces for both our existing and prospective tenants.” Mr Huljich said.

Repositioned for rental growth

Mr Huljich went on to outline Centuria and BlackRock’s strategy to increase the rental returns and consequently the value of the property – starting with a major refurbishment program aimed at transforming the metro office tower into a premier workplace destination, unrivalled in Chatswood and Sydney’s North Shore.

Mr Huljich explained that tenant requirements have been evolving over the past 10 years, and that modern end-of-trip facilities are now seen as essential in any quality property, whether it is in the CBD or the suburban markets and certainly assists in creating stronger tenant demand.

“In the time we have owned The Zenith with BlackRock, our asset management teams have worked extremely hard on the property – they have closed 58 leasing deals to take the occupancy to 100% and increase the WALE from 2.5 to 4.3 years.”

“The success of our active management strategy is clear in the significantly increased rents. When we bought The Zenith in 2016, market rents were on average $490 per sqm net pa and we have recently completed a deal at $685 per sqm net pa, which is the highest rate ever recorded in Chatswood. This is because tenants recognise the quality of the property and its position as the premier building in its market.”

About the property

The Zenith is an iconic A-Grade office complex comprising twin 21 level towers and basement parking. The Centuria Zenith Fund holds a 50% interest in the Property, co-investing with a private real estate fund managed by leading global fund manager BlackRock.

The property is located in the heart of Sydney’s North Shore office market in close proximity to Chatswood Station, at 821 Pacific Highway approximately 12 kms North of Sydney CBD. It has a net lettable area of 44,102 sqm, with 785 parking spaces, on a 7,990 sqm site.

Centuria Diversified Property Fund (CDPF) has announced the acquisition of 10 Moore Street, Canberra. The property known as the ‘Optus Centre’ will be purchased for $35 million from commercial property group Quintessential Equity and, combined with the recent purchase of an office property in Hamilton, Queensland, will take CDPF’s Assets Under Management (AUM) to over $100m1.

Jason Huljich, Head of Real Estate and Funds Management at Centuria, said “Strong support from investors and financial advisers in the CDPF has seen the fund’s inflows increase significantly this financial year, allowing the fund to make strategic purchases. 10 Moore Street is a centrally-located property – ideally positioned in Civic, the heart of Canberra’s CBD precinct. Public transport to the area is excellent and Stage 1 of the light rail, currently under construction, will improve links further with a terminus only 100 metres from the building.”

“Canberra is Australia’s second fastest-growing city<sup>2</sup> and this, combined with its central location, was a key factor in our decision to buy 10 Moore Street. The building has been fully regenerated to a very high standard by Quintessential Equity. Work was undertaken to improve the environmental footprint of the building and resulted in a 5-star NABERS energy rating but also to provide modern end-of-trip facilities (including showers, lockers and bike storage) and upgraded lobbies, lifts, bathrooms and exterior.”

Key metrics

Net lettable area6,709 sqm
Site area1,554 sqm
WALE4.3 years3
Occupancy98%32

Growth in the CDPF, particularly via direct acquisitions of quality property, is a key part of the fund’s strategy. Mr Huljich explains “CDPF is likely to continue to invest in Centuria’s unlisted property trusts, due to their high quality income streams, however, we also intend to make more direct acquisitions, because it gives us more control over the geographical diversity of the trust, and the ability to tilt our portfolio to where we see the most potential.”

“It also means direct property exposure for our investors – with the added benefit that directly-held property improves liquidity and we believe this to be in the best interests of our investors.”

Mr Huljich concluded by saying that he is always on the lookout for quality properties to add to CDPF’s portfolio, and that while he considers commercial offices the most appealing sector at present, he is not ruling out other sectors.

“We are asset-specific buyers, so we are happy to consider all markets if we believe we can identify value – and our asset management team are experts when it comes to leasing, managing, and improving our property assets with the aim of achieving strong returns for our investors.”

1. Forecast AUM is based on the settlement of 381 Macarthur Ave, Hamilton (contracts exchanged) and the settlement of 10 Moore Street, Canberra. Various reasonable assumptions have been made in respect to equity inflows and does not consider potential redemptions.

2. https://www.abs.gov.au/ausstats/abs@.nsf/latestProducts/3218.0Media%20Release12017-18

3. As at 30 June 2019

Disclaimer
Issued by Centuria Property Funds Limited (Centuria) (ABN 11 086 553 639, AFSL 231 149), a wholly-owned subsidiary of Centuria Capital Group (ASX: CNI), as Responsible Entity for the Centuria Diversified Property Fund (ARSN 611 510 699). The information in this article is general information only and does not take into account the financial circumstances, needs or objectives of any person. Centuria is the responsible entity of a number of listed and unlisted property funds, each of which are issued under a product disclosure statement (PDS) that is available on Centuria’s website centuria.com.au for all funds open for investment. An investment in any of Centuria’s property funds carries risks associated with an investment in direct property including the loss of income and capital invested. The risks relating to an investment are detailed in each Fund’s PDS and Centuria strongly recommends that the PDS be downloaded and read before any investment decision is made.  Centuria receives fees from investments in its property funds. Past performance is not a reliable indicator of future performance.

 

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