Centuria subsidiary, Centuria Property Funds Limited, has acquired, 80 Flinders Street, Grade A office building in Adelaide for A$127 million, generating a new fund for Centuria’s unlisted division. The fund is expected to launch in August 2019, delivering FY20 and FY21 distribution yields of 6.50% p.a and 6.60% p.a..
Located in Adelaide’s core CBD precinct, the Grade A office building was cınstructed in 2006 and refurbished in 2019.
”The group’s latest acquisition represents another example of our team’s ability to selectively identify quality real estate opportunities in a highly competitive environment. As a market, Adelaide is continuing to transform, offering attractive fundamentals relative to other core CBD markets. The tenants within 80 Flinders Street are also well positioned for growth, with South Australia’s strong commitment to a pipeline of approximately $130 billion of infrastructure and defence projects,” said Jason Huljich, Joint CEO.
‘We are excited to be launching a new unlisted fund in Adelaide, a market that we have strong operational expertise within. Across the Group we are managing over $200 million of A-grade assets from both our listed and unlisted divisions located in this region and we continue to identify quality opportunities within this market to provide to our broad investor base,” he added.
“Centuria’s property team expects to build on FY19 momentum with a greater range of attractive real estate acquisitions in FY20 across its stable of listed, unlisted and healthcare funds.”
The sale was managed by Guy Bennett of Knight Frank and Ian Thomas of CBRE.