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South Australia’s premier CBD office property the latest addition to $4.7 billion portfolio
Centuria Capital Group (CNI) today announced that it exchanged unconditional contracts for the purchase of a 50% stake in the Bendigo & Adelaide Bank headquarters at 80 Grenfell Street, Adelaide, for $92.3 million. Acquisition of the $184.6 million office tower was made in partnership with Centuria’s capital partner, the Lederer Group, which will take up the remaining 50% stake in the property.
Key acquisition and impact information
Key property information
Commenting on the transaction, Centuria Head of Real Estate and Funds Management, Jason Huljich said the acquisition is complementary to Centuria’s ambitious growth strategy and demonstrates the business’s capability to find quality investment opportunities for its investor clients.
“We continue to build on the significant growth we achieved in the 2017 financial year, using our increased access to capital markets and our strong market position to move quickly when we identify an opportunity.
“So far this financial year, we have achieved $747.3 million in organic acquisitions to grow our assets under management to $4.7 billion,” he said.
Mr Huljich went on to comment on the Adelaide market, explaining that over the past few years it has become increasingly attractive to property investors for a number of reasons.
“The South Australian government’s decision to reduce stamp duty has been a positive strategic move to help drive investment in to the State. Compared with other states, where stamp duty averages 5.5%, South Australia’s is currently 1.8%, moving to zero on July 1, 2018.”
“When transaction costs are lower, yields are higher,; which means better returns for our investors. And at the same time, the South Australian economy is on the up and up. Significant investment in defence infrastructure and health are driving growth in employment and economic activity generally – all good news for property markets,” Mr Huljich said.
Paul Lederer, Chairman of The Lederer Group, said: “We are pleased to once again be able to partner with Centuria on another quality acquisition, following the recent purchase of 201 Pacific Highway St Leonards. Adelaide is a stable, income driven market with strong credentials and, with the support of Centuria’s property team, we are confident the asset will perform well and support the growth of our property division.”
The Lederer Group continues to demonstrate they are a key player in the property market, with this latest acquisition further strengthening an already diversified property portfolio, including shopping centres, commercial office and residential properties, along with a number of significant development projects, both under construction and in the pipeline.
1. Annualised forecast yield for the period 23 July 2018 to 30 June 2019. The forecast returns are predictive in nature and are calculated in accordance with a number of underlying assumptions set out in the Product Disclosure Statement. 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.