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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
The context: The investment opportunity for the office fund has been offered to domestic investors and \u201chas been well supported by Japanese-based institutional investors\u201d. Settlement is scheduled for the first quarter of FY27.<\/p>\n
The other 50% of the office is held by a domestic real estate investment management group.<\/p>\n
The offices are located in the World Square precinct and are supported by the nearby Gadigal Sydney metro station.<\/p>\n
What they said: \u201cWe 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,\u201d Centuria joint CEO Jason Huljich said.<\/p>\n
\u201cNew supply is structurally constrained, while existing stock continues to be withdrawn or repositioned, reinforcing the medium-term outlook for prime assets.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The news: Property investor Centuria Capital Group has acquired a 50% interest in what it describes as Sydney…\n","protected":false},"author":2,"featured_media":41744,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[33051,33052,6911,1310,247],"class_list":["post-41743","post","type-post","status-publish","format-standard","has-post-thumbnail","category-sydney","tag-asxcni","tag-deals","tag-markets","tag-property","tag-sydney"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/posts\/41743","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/comments?post=41743"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/posts\/41743\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/media\/41744"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/media?parent=41743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/categories?post=41743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/tags?post=41743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}