Portfolio Update – Victor Georos
The Centuria-managed property portfolio across CMA and the Unlisted Funds continues to perform well with occupancy currently above 97.8% across the portfolio and strong tenant retention rates being achieved. We manage around 375 tenants with an annual rent roll of approximately $114 million.
In April we successfully transitioned the management of the three recently acquired assets at Australian Technology Park and we are currently in the process of preparing to take management control of the The Zenith in July, including adding four new staff members to the team.
After The Zenith is settled, the value of the portfolio will increase to over $1.5 billion with a total lettable area under management of circa 267,000 square metres.
Considerable progress has been made in the June quarter with over 8,500 square metres of office space leased or renewed. This included a 10-year lease renewal over 5,917 square metres (52% of NLA) to CSIRO at 13 Garden Street (Eveleigh) which was an excellent outcome for the newly established Centuria ATP Fund.
With 4,100 square metres (62% of NLA) of expiries at 8 Australia Avenue (Olympic Park) over the next 12 months, the team has managed to secure two new leases totaling 453 square metres and has agreed terms over a further 2,438 square metres.
A further five leasing transactions, totaling around 1,600 square metres, were finalised for CMA over the quarter, primarily at 60 Marcus Clarke Street (Canberra) and 9 Help Street (Chatswood).
Despite a slow leasing market in Brisbane, our proactive leasing strategy has resulted in good progress at 200 Creek Street this quarter. We have 235 square metres leased, 311 square metres under offer and proposals out over a further 818 square metres.
There is a high level of interest over the remaining areas and the expiry profile has been significantly enhanced with the new deals supporting strong rental growth.
Other articles appearing in this quarter’s newsletter
New Funds and Upcoming Opportunities Update – Michael Blakes
Centuria Metropolitan REIT Update – Nick Collishaw
Market Update – Hadyn Stephens