• Centuria Government Income Property Fund

    Fund Closing

    Centuria Government Income Property Fund

  • Investment Rationale

    Fully leased, A-grade office asset with a WALE of 11.8 years

    Centuria Government Income Property Fund

  • Investment Rationale

    Approximately 91% of the income underpinned by the Victorian government and state-owned entities.

    Centuria Government Income Property Fund

  • Investment Rationale

    The property has been identified as a suburban government hub in Footscray – 6.5km from Melbourne CBD.

    Centuria Government Income Property Fund

  • Investment Rationale

    Material locational uplift expected due to significant infrastructure investment and population growth.

    Centuria Government Income Property Fund

Centuria Government Income Property Fund – Fund Closing

The Fund is now closing. All monies and applications are due by 28 July, 2021.

The Fund is acquiring a 100% interest in an A-grade commercial office asset located within the emerging inner-city suburb of Footscray, approximately 6.5 kilometres from Melbourne’s CBD.

1 McNab Avenue is 100% leased4 with a Weighted Average Lease Expiry (WALE) of 11.8 years4 and approximately 91% of the income underpinned by the State Trustees, the Department of Treasury and Finance and City West Water. All six leases over the property are also structured on a net basis and include fixed annual rent increases of between 3.50% and 4.00%, which delivers healthy built-in rental growth.

Designated as one of Melbourne’s priority precincts, Footscray is set to be transformed by significant infrastructure investment and population growth. Furthermore, the property has been identified by the Victorian government as the first of five suburban hubs to allow public servants to work closer to home.

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.

Fund Timetable

Fund open1 July 2021
Applications and monies due28 July 2021
Fund establishment date11 August 2021
First distribution310 October 2021

Centuria reserve the right to close the Fund once fully subscribed.

Forecast Distribution Yields

Forecast Distribution Yields

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.

Minimum Investment

Minimum Investment

The minimum investment in the Fund is $50,000. Centuria may accept investments that are less than this amount at its discretion.

Fund Term

Fund Term

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.

Why Centuria?

Why Centuria?

Centuria Capital Group is an ASX listed specialist fund manager with $16 billion5 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 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

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. 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 September 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 1 July 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 September 2021.
(5) Pro forma AUM as at 31 December 2020 adjusted for post balance date revaluations and acquisitions. Prepared on the basis of 100% acquisition of Primewest Securities by Centuria. Includes the 50% acquisition of Bass Capital as well as 140 St Georges Terrace, and Centuria Industrial REIT (ASX:CIP) revaluations.

*Ratings Disclaimer

Core Property ratings disclaimer:
The Core Property rating (assigned in July 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.
Lonsec ratings disclaimer:
Ratings are published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec).  Ratings are general advice only and have been prepared without taking account of your objectives, financial situation or needs.  You should consider the appropriateness of the advice, having regard to your personal circumstances, objectives, financial situation and needs, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product.  Past performance information is not indicative of future performance.  Ratings are subject to change without notice and Lonsec assumes no obligation to update.  Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. ©2021 Lonsec. All rights reserved.

Disclaimer

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 ARSN 650 901 812 (Fund). Centuria expects to issue a Product Disclosure Statement (PDS) for the Fund on or about 1 July 2021 (once issued, the PDS will be available at www.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 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.

You are now leaving Centuria Australia
and entering Centuria New Zealand.

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