Centuria Property Funds No.2 Limited (CPF2L), a subsidiary of Centuria Capital Group, has agreed to acquire 348 Edward Street, a 119,000-square-foot office asset in Brisbane, Australia from Hines for A$89 million, which will generate a new fund for Centuria’s unlisted division.
The new fund is expected to launch in October 2019 and is forecast to deliver an FY20 distribution yield of 6.25%2,3 growing to 6.50%3 in FY21.
348 Edward Street is a prominent office asset located in the Brisbane CBD, 60 metres from Central Railway Station and near surrounding amenity including the Brisbane Private Hospital, Brisbane Magistrate Court and the regenerated Queen Street Mall precinct.
Hines acquired 348 Edward Street in 2016.The 15-story office building was built in 1986 and was refurbished in 2007.
The asset has a 5.1 year WALE4 and is 89% occupied, predominantly underpinned by ASX listed or multinational tenants.
Jason Huljich, Joint CEO of Centuria, said “We are pleased to be offering another high quality fund for our investor base. 348 Edward St is a well located, attractive asset close to surrounding amenity and transport infrastructure.”
“This transaction grows our unlisted fund opportunities to $216 million in FY20 year to date. Additionally, Centuria’s listed office REIT, CMA, has recently committed to acquire two A grade office assets for $380 million and successfully completed a $206 million institutional placement and entitlement offer on 19 September 2019 supporting these purchases. Centuria’s listed industrial REIT, CIP, has also settled four recent acquisitions for a total consideration of around $80 million since 30 June.”
“These acquisitions are an integral part of our group strategy to accelerate AUM growth and we expect to continue this momentum by executing on further attractive opportunities across our real estate platform.”