Grade-A office property in Canberra sold for A$256m

Centuria buys Grade-A office property in Canberra for A$256m

Centuria Metropolitan REIT(CMA) has acquired NewActon Nishi Building, a high quality Grade-A commercial office property in Canberra for A$256 million.

Centuria will raise $185 million through a fully underwritten institutional placement at an issue price of $3.00 per CMA unit, representing a 4.7 per cent discount to the last closing price, according to announcement by Centuria.

“This acquisition reinforces CMA’s position as Australia’s largest listed pure play office REIT, by building a diversified portfolio of quality office assets underpinned by strong tenant covenants. NewActon Nishi Building is a high quality A-grade commercial office asset, leased predominantly to the Federal Government and strategically located in NewActon, a vibrant and gentrifying precinct within Civic, Canberra,” said Grant Nichols CMA Fund Manager.

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“The building, completed in 2012, is highly recognised with several industry awards, including ‘Best International Project of the Year’ by the Building Awards in London, and will lower the average age of CMA’s portfolio from 16.4 years to 15.2 years. Geographic diversification is improved as the Acquisition increases the portfolio weighting to the ACT, which is Australia’s fourth largest office market, from 5% to 16%,” added Nichols.

“The Acquisition continues to strengthen the quality of CMA’s income streams, underpinned by leases to Federal Government tenants covering 54% of rental income, and structured rental growth with fixed rental reviews averaging 3.34% per annum. CMA’s portfolio metrics are also enhanced with total portfolio value expanding to $2.1 billion, and WALE increasing from 4.8 years to 5.1 years.”