Property fund manager Centuria sells Brisbane office building for $37m

Brisbanes' Southbank at night.

Australian property fund manager Centuria Property Funds announced that it has sold an A-grade office building in Brisbane’s inner city to Sydney-based fund manager Aviator Capital for $36.95 million.

The property – 19 Corporate Drive in Cannon Hill – is a two-level commercial building comprising of 6,028 square meter of A-grade office accommodation. The building was completed in 2008.

Centuria acquired the property in December 2012 for $23.30 million.

“The fund’s investment rationale since commencement was to provide investors with stable, high-yielding, and diversified income returns from a quality commercial office property situated in one of Brisbane’s most prominent growth corridors,” said Jason Huljich, Centuria’s head of real estate and funds management.

He added that the gross sale price achieved was approximately $5.1 million or 17 per cent in excess of the December 2018 valuation, which is an outstanding result for the fund.

The property is strategically positioned 6 km from the Brisbane CBD in the tightly-held Southgate Corporate Park.

It was Aviator’s third acquisition within the Brisbane market.

Last week, Centuria and a vehicle managed by global investment manager BlackRock have exited their jointly-owned Zenith office towers in Sydney.

The investors said they intended to hold the Grade A office complex for a longer period but strong demand for the asset resulted in an acceleration of the exit. The fund managers said they had received ten offers for The Zenith.

Centuria’s 50 per cent share of The Zenith is owned by investors in the single-asset, unlisted Centuria Zenith Fund. The fund will be wound up and proceeds will be distributed to investors after the sale settles.

The Zenith is an iconic A-Grade office complex comprising twin 21-level towers and basement parking. The property is located in the heart of Sydney’s North Shore office market, approximately 12 km North of Sydney central business district.