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Centuria divests Sydney fringe A-Grade office building for $116m
Centuria divests its last remaining Centuria ATP Fund office asset
- Last remaining asset in a South Eveleigh portfolio owned by the unlisted Centuria ATP Fund.
- Fund’s collective divestments achieve 20% IRR, c.10% average annual income yield.
- Strong fund performance demonstrates strength of key metro office markets and resurgence of investor appetite.
Australasian real estate funds manager, Centuria Capital Group (ASX: CNI or “Centuria”), has divested its last remaining Centuria ATP Fund office asset in South Eveleigh for $116million to funds managed by Marprop Real Estate Investors and Gresham Property Funds Management.
In April 2016, Centuria acquired the A-Grade office building at 13 Garden Street, South Eveleigh NSW along with two other assets, BioMed Building at 1 Central Avenue and the Belltower at 6 Cornwallis Avenue, as part of the Centuria ATP Fund (‘Fund’).
Following its final divestment, the Fund will facilitate a 20% IRR and delivered a c.10% average annual income yield during its term.
Jesse Curtis, Centuria Head of Funds Management, said, “We are extremely pleased to deliver such a strong return to our Fund investors across the past nine-year period. The Fund began with three buildings within the South Eveleigh business precinct and since 2016 the area has undergone significant regeneration and urbanisation, including improved transport infrastructure and connectivity, resulting in strong rental growth within this prime fringe location.
“We believe this recent divestment signals a turning point in the metropolitan office market, and a resurgence in investor appetite for modern, sustainable properties. This, coupled with growing evidence of momentum in office-centric workforces led by government departments and large corporations, point to positive medium-term tailwinds.
“Furthermore, key economic drivers including population growth spurring white-collar employment and anticipated future office supply contracting as economic rents are expected to outstrip prevailing market rents, provide compelling fundamentals for office investment.”
The A-Grade office building is 250-metres from both the newly opened Waterloo Metro station and Redfern’s Southern Concourse, the latter providing direct connections to six of eight Sydney Heavy Rail commuter lines.
Marprop Real Estate Investors, in co-ownership with Gresham Property Funds Management, confirms 13 Garden Street has been acquired on behalf of their respective managed funds in line with their respective investment strategies.
Cushman Wakefield’s Steven Kearney, Jack Harrison and Kenny Duncanson, and Knight Frank’s Jonathan Vaughan acted on behalf of Centuria.
For further information, please contact:
| Centuria Capital Limited |
Jesse Curtis Head of Funds Management T: +61 2 8923 8923 E: jesse.curtis@centuria.com.au |
Alexandra Koolman General Manager – Communications T: 0467 797 421 E: alexandra.koolman@centuria.com.au |
| Marprop Real Estate Investors |
James Marshall Managing Director T: +61 2 8376 5999 E: jamesm@marprop.com.au |
|
| Gresham Property |
Ami Simon Managing Director T: +61 2 8256 3619 E: asimon@gresham.au |
About Centuria Capital Group
Centuria Capital Group (CNI) is a leading real estate funds manager with a unique Australasian focus and more than $20.5 billion of assets under management (as at 31 December 2024). We offer a range of investment opportunities including listed and unlisted real estate 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 meaningful investments.
About Marprop Real Estate Investors
Marprop is a specialist real estate fund manager with a strong investment and asset management thesis. We exceed investment and asset performance returns by identifying market dislocation and mispriced opportunities, then applying our ‘Beyond Grade’ asset management and ‘Friction Free’ leasing.
About Gresham Property
Established in 1985, Gresham Partners is Australia’s leading independent advisory and funds management firm. Over nearly 40 years, the Gresham Group has built a reputation for independence and innovation. A division of the Gresham Group, Gresham Property provides a full suite of financing, advisory and structuring solutions to the property and development industry, including property capital financing (stretch senior and mezzanine) and syndication (debt and equity) for construction, residual stock, transitional assets and income producing assets.
Disclaimer: This communication is issued by Centuria Property Funds Limited (ABN 11 086 553 AFSL 231 149) (Centuria) as the responsible entity of the Centuria ATP Fund (ARSN 610 104 320)(Fund). This document is not a recommendation or personal advice in relation to, or any offer of securities in, Centuria or any product or service offered by Centuria. This media release contains selected summary information and does not purport to be all-inclusive or to contain all of the information that may be relevant, or which a prospective investor may require in evaluations for a possible investment in the Fund. It should be read in conjunction with the Fund’s periodic and continuous disclosure announcements which are available at www.centuria.com.au. The information in this document is general information only and does not take into account the objectives, financial situation or particular needs of any person. You should consider whether this information is appropriate for you and consult your financial or other professional advisor before investing. You should obtain and read a copy of the PDS relating to the Fund before making a decision to invest. The Product Disclosure Statement (PDS) for the Fund is available from Centuria’s website (www.centuria.com.au).