ASX-lised Centuria buys $89m Adelaide property to launch new unlisted fund in Aug

55 Currie Street, Adelaide, Australia. Source: ARA Trust Management (Suntec) Limited

Australia-listed real estate fund manager Centuria Capital has acquired an Adelaide office building for $89.4 million (A$ 127 million), generating a new fund for Centuria’s unlisted division.

Constructed in 2006 and refurbished in 2019, the office property at 80 Flinders Street is an A-Grade building located in Adelaide’s core CBD precinct. The building is occupied with 95 per cent of gross income underpinned by multinational and ASX listed companies.

With the latest acquisition, the property investor’s new fund is expected to launch next month and hopes to deliver distribution yields of 6.5 per cent and 6.6 per cent per annum for the financial years 2020 and 2021, Centuria said in an announcement on Monday.

“We are excited to be launching a new unlisted fund in Adelaide, a market that we have strong operational expertise within,” said joint CEO Jason Huljich.

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 A$130 billion of infrastructure and defence projects.

Across the group, the firm is managing over A$200 million of A-grade assets from both listed and unlisted divisions located in the region.

“Quality real estate opportunities continue to provide attractive alternatives to other asset classes in the current environment. We continue to see examples of attractive spreads between real estate returns being generated and other investment options such as cash rates, term deposits, and government bonds,” Huljich 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 recent sale was managed by Knight Frank and CBRE.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.