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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.”
| Net lettable area | 6,709 sqm |
|---|---|
| Site area | 1,554 sqm |
| WALE | 4.3 years3 |
| Occupancy | 98%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.