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The Fund is now open for expressions of interest.
The Fund is acquiring a 100% interest in an A-grade commercial office asset located within the vibrant harbourside destination of Port Adelaide, approximately seven kilometres from the Osborne Naval Shipyard.
25 Nile Street is fully leased4 with a Weighted Average Lease Expiry (WALE) of 11.1 years4 and 100% of the income is underpinned by the Minister for Transport and Infrastructure (Shared Services SA) and the Urban Renewal Authority (Renewal SA). Both leases over the property include fixed annual rent increases of 3.00%5, which delivers healthy built-in rental growth.
Developed and released by Renewal SA in 2014, the Port Adelaide Precinct Plan is set to change the historic harbour into a contemporary mixed use urban area with a sustainable local economy and regional activity centre. As a result, there is no other community in South Australia undergoing a transformation like Port Adelaide.
The Fund is forecast to provide attractive, tax-effective returns of 5.25% p.a. (annualised) in FY22 and growing to 5.35% p.a. in FY231,2.
If you would like to receive a Product Disclosure Statement for the Centuria Government Income Property Fund No. 2 (Fund), which will be available on or around 25 October, please complete an online expression of interest form.
100% of Income
from Government of
The Fund is forecast to provide attractive, tax-effective returns of 5.25% p.a. (annualised) in FY22 and growing to 5.35% p.a. in FY23, with distributions being paid on a monthly basis1,2.
The minimum investment in the Fund is $50,000. Centuria may accept investments that are less than this amount at its discretion.
The Fund will have an initial investment term of five (5) years.
The Fund term 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.
No redemption facility is available.
Centuria Capital Group is an ASX listed specialist fund manager with $17.4 billion6 of assets under management.
Centuria Property Funds offers investments in listed and unlisted property across high quality office, industrial and healthcare assets 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 22 year heritage and in that time, has completed numerous unlisted property funds.
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 macroeconomic 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 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.
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 Product Disclosure Statement and understand the risks of investing.
(1) Annualised distribution yield for the period 1 December 2021 to 30 June 2022.
(2) Forecast returns are predictive in nature and are calculated in accordance with a number of underlying assumptions set out in the Product Disclosure Statement (expected to be issued on or around 25 October 2021). 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.
(3) Distributions will be paid if declared by Centuria Property Funds No.2 Limited and will be subject to the terms set out in the PDS.
(4) By income, as at 1 December 2021.
(5) There is a 2.95% review in 2022 for the Minister for Transport and Infrastructure (Shared Services SA) lease, then it increases to 3.00% thereafter. A market review with ratchet and a cap is also included within 2028.
(6) Pro forma AUM as at 30 June 2021. All figures above are in Australian dollars (currency exchange ratio of AU$1.000:NZ$1.0753). Numbers presented may not add up precisely to the totals provided due to rounding. Includes commenced development projects valued on an as if completed basis, cash and other assets, assets exchanged but not settled.
Core Property ratings disclaimer:
The Core Property rating (assigned in October 2021) presented in this document has been prepared and issued by Core Property Research Pty Ltd (“Core Property”), which is an Authorised Representative ASIC number 1280479 of Core Property Research Holdings Pty Ltd (ACN 633 170 751, AFS License No. 518320) (Licensee), and trading as Core Property. Whilst the information contained in the report has been prepared with all reasonable care from sources that Core Property believes are reliable, no responsibility or liability is accepted by Core Property for any errors, omissions or misstatements however caused. Past performance information is for illustrative purposes only and is not indicative of future performance. The Core Property publication is not and should not be construed as, an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Any opinion contained in the Report is unsolicited general information only. Neither Core Property nor the Participant is aware that any recipient intends to rely on this Report or of the manner in which a recipient intends to use it. To access the full report, please visit www.coreprop.com.au. The rating is subject to change without notice and Core Property assumes no obligation to update the report.
Disclaimer: Centuria Property Funds No. 2 Limited (ABN 38 133 363 185 AFSL 340 304) (Centuria) is the Responsible Entity for the Centuria Government Income Property Fund No. 2 (Fund) ARSN 653 978 753. A copy of the Product Disclosure Statement (PDS) for the Fund is expected to be available on or around 25 October 2021 at: centuria.com.au. 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 adviser before investing. You can access a copy of this Fund’s Target Market Determination (TMD) document, expected to be available on or around 25 October 2021 at: centuria.com.au/design-distribution-obligations-ddo/. You should also 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.