Centuria Capital Group acquires $454m Sydney CBD office assets from Brookfield
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The news: Property investor Centuria Capital Group has acquired a 50% interest in what it describes as Sydney CBD A-grade office assets from a fund managed by Brookfield for $454 million.
The numbers: Centuria has acquired a 50% interest in office assets at 680 George Street and 50 Goulburn Street at an acquisition price that is 60% below estimated replacement cost.
The assets will be held in a new single-asset closed-end unlisted fund known as the Centuria Sydney CBD Prime Office Fund and has offered an equity raise of about $268 million.
The fund offers an initial five-year term and forecasts a 7.5% per annum distribution yield, which will be paid monthly. The minimum investment starts at $100,000.
The context: The investment opportunity for the office fund has been offered to domestic investors and “has been well supported by Japanese-based institutional investors”. Settlement is scheduled for the first quarter of FY27.
The other 50% of the office is held by a domestic real estate investment management group.
The offices are located in the World Square precinct and are supported by the nearby Gadigal Sydney metro station.
What they said: “We are deploying capital into a repriced Australian office market, where dislocation has created a window to acquire an institutional-grade CBD asset significantly below replacement cost and at an attractive income yield,” Centuria joint CEO Jason Huljich said.
“New supply is structurally constrained, while existing stock continues to be withdrawn or repositioned, reinforcing the medium-term outlook for prime assets.”
The source: ASX
