In a statement, Centuria said 10 Moore Street, Canberra, also known as the Optus Centre, will be directly purchased by Centuria Diversified Property Fund (CDPF), a fund managed by its wholly-owned subsidiary Centuria Property Funds Limited.
10 Moore Street is a six-level office building with about 6,700 square meters of net lettable area on a 1,554 square meter site. Its current 14 tenants are a diverse group of occupants, some of who have been in the building for over 25 years.
“Canberra is Australia’s second fastest-growing city (after Melbourne) and this – combined with 10 Moore Street’s central location – was a key factor in our decision to buy. And we believe Moore Street will also quickly benefit from significant public and private investments nearby,” said Jason Huljich, Centuria’s Head of Real Estate and Funds Management.
Quintessential Equity acquired the building in 2014 for $18 million from AMP Capital. The building has recently been refurbished with a 5.0-star NABERS energy rating.
“Since we acquired the building in 2014, we’ve completed a full regeneration and successful releasing campaign at the property, future-proofing it for years to come,” Russell Bullen, Quintessential Equity’s CEO, said.
Quintessential Equity is a diversified commercial property group that provides wholesale investors with sound, risk-mitigated, syndicated property opportunities. The company focuses on commercial and industrial investment and development properties in strategic locations.
The acquisition, combined with the recent purchase of an office property in Hamilton, Queensland, will see CDPF’s assets under management rise to over $100 million, according to Huljich.
“CDPF is likely to continue to invest in Centuria’s unlisted property trusts, due to their high-quality income streams, however, we also intend to make more direct acquisitions, because it gives us more control over the geographical diversity of the trust, and the ability to tilt our portfolio to where we see the most potential,” he said.
CDPF, Huljich added, will continue to look for quality properties to add its portfolio with a focus on commercial offices. CNI, the parent company, is an ASX-listed specialist investment manager with $5.6 billion in assets under management.