Centuria subsidiary, Centuria Property Funds No.2 Limited (CPF2L), have entered into an agreement to acquire 348 Edward Street in Brisbane for $89 million, which will generate a new fund for Centuria’s unlisted division.

 The fund is expected to launch in October 2019 and is forecast to deliver an FY20 distribution yield of 6.25 per cent, growing to 6.50 per cent in 2021. 

348 Edward Street is a prominent office building 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.

At a glance:

• Centuria Capital Group buys central Bisbane building at 348 Edward Street for $89 million
• The property will be used to generate a new fund for Centuria's unlisted division
• The building comes with a 5.1-year WALE and has 89 per cent occupancy

The asset has a 5.1-year WALE and is 89 per cent occupied, predominantly underpinned by ASX listed or multinational tenants. 

Jason Huljich, Joint CEO of Centuria, said the company was pleased to be able to offer another high-quality fund for its investor base and that the Brisbane building was 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,” he said. 

“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.” 

Centuria Capital Groups is an ASX-listed specialist investment management with $6.6 billion of assets under management.

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