96% leased to
Australia’s fifth largest
full service retail bank

7.3 Year1
Weighted Average
Lease Expiry

Starting forecast yield
7.00% p.a.2

A Product Disclosure Statement can be obtained by completing an expression of interest form.


Investment Overview

Secure your investment in what is widely regarded as Adelaide’s premier office building. Home to Australia’s fifth largest full service retail bank – the Bendigo and Adelaide Bank – this state of the art building is subject to a long-term lease, generating rental income reliability for the fund. In addition, as a commercial property investment, there is the potential for capital growth.

Well known for its status as one of the world’s most liveable cities, Adelaide is enjoying strong economic growth fuelled by a pipeline of large infrastructure projects. This includes the $3.6 billion Royal Adelaide Hospital and BioMed City, one of the largest life sciences clusters in the southern hemisphere, a $90 billion commitment in submarine and frigate construction contracts and $727 million in redevelopments of the Adelaide Convention Centre and SkyCity Casino, plus a 10 gigabit high speed fibre optic network.

The Fund is a single-asset, closed-ended unlisted property fund investing in a 50% freehold interest in the property located at 80 Grenfell Street, Adelaide SA. Investors will receive Units in the Fund. The Property is 96% occupied with a long-term Weighted Average Lease Expiry (WALE) of 7.3 years by income as at 1 August 2018.


Forecast Returns

The Fund is forecast to provide attractive, tax-effective returns of 7.00%2 (annualised) in FY19 and growing to 7.20%2 in FY20, with distributions being paid on a monthly basis. Forecast returns are also anticipated to be ~80% and ~65% tax deferred respectively.


Minimum Investment

$50,000. Centuria may accept investments that are less than this amount at its discretion.


Fund Term

The Fund will have an initial term of five (5) years, however it may be extended by up to an additional two (2) years by an Ordinary Resolution of the Investors (more than 50% of votes cast are in favour of the extension). The term of the Fund may be extended beyond seven (7) years for up to two (2) years at a time where a Unanimous Resolution is passed by Investors (100% of votes cast are in favour of the extension).

The Fund term may also be extended where a Unanimous Resolution is not passed, but all Investors who voted against the Unanimous Resolution are given an opportunity to have their Units sold or redeemed at the prevailing Withdrawal Price (Liquidity Event). Whether a Liquidity Event is offered is determined by Centuria. Please refer to the PDS for more information about a Liquidity Event.

If a Liquidity Event is not offered by Centuria, then the Fund term will not be extended and Centuria will sell the Property and wind up the Fund.


Fund information


Why Centuria?

Centuria Capital Group is an ASX listed specialist fund manager with $4.6 billion of assets under management.

Centuria Property Funds offers investments in listed and unlisted property across 70+ high quality office and industrial buildings around Australia. We are a relationship business, forging close connections with investors and actively managing properties to improve usability and attract and retain good tenants. We see this as our competitive advantage, which has helped us achieve a strong record of competitive income returns and capital growth.

The unlisted business has a 20 year heritage and in that time, has completed 38 unlisted property funds.


Centuria’s Value Add Investment

Centuria’s investment philosophy is founded on an active management approach to real estate where relationships are key and value can be added at all stages of the investment process (acquisition, ownership, management and disposal). Centuria has a particular strength in identifying assets that require intensive asset management to maximise returns and has an in-house team to deliver the requisite range of value-add services. Centuria does not try to predict broader macro economic trends but instead believes that an asset that is well acquired and actively managed will outperform a passive approach through the full economic cycle.


Centuria’s Investment Process

Centuria believes in a “hands-on” approach to managing property assets. Unlike a lot of property fund managers, Centuria does not outsource its property management to real estate agents (although property management may be outsourced in remote locations or for special purpose assets). Centuria has a fundamental belief that it can deliver better returns from its property assets by having a closer relationship with the tenants and a better understanding of the buildings themselves.

 


Risks

All investments in unlisted property funds carry risk. As the Fund invests in commercial property, it carries the market and property risks associated with investing in property. As a geared investment, the Fund also carries associated financial and leverage risks. As the Fund will hold 50% of the underlying investment with a commercial partner, investors should understand the impact this may have on their investment. Risks can impact on distribution and capital returns over the term of the Fund. It is important that you read the Product Disclosure Statement and understand the risks of investing.



1 As at 1 August 2018. Includes 18 month vendor rental guarantee over vacant space of 889 sqm.
2 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. Forecasted annualised distribution yields are for the period 23 July 2018 to 30 June 2019.

Disclaimer: Centuria Property Funds Limited ABN 11 086 553 639 AFSL 231149 (Centuria) intends to register the Centuria 80 Grenfell Street Fund (Fund) with the Australian Securities and Investments Commission as a registered managed investment scheme. Centuria expects to issue a Product Disclosure Statement (PDS) for the Fund on or about 4 June 2018. All investments in unlisted property funds carry risk. As the Fund invests in commercial property it carries the market and property risks associated with investing in property. As a geared investment, the Fund also carries associated financial and leverage risks. Risks can impact on distribution and capital returns over the term of the Fund. It is important that you read the PDS and understand the risks of investing. This information 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. Centuria and its associates will receive fees in relation to an investment in the Fund as disclosed in the PDS. Investment in the Fund is subject to risk including possible delays in payment or loss of income and principal invested. Centuria does not guarantee the performance of the Fund.