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- Investment managers Centuria Capital have bought 80 Flinders Street in Adelaide for $127 million
- The eight storey, 3240 square metre building is currently fully occupied, with 95 per cent of occupants being multinational and ASX listed companies
- Centura Capital believes the investment will make a 6.5 per cent growth in 2020 and a 6.6 per cent growth the following year
- Last financial year, the company made $0.9 billion in acquisitions alongside a $438.2 million sale of a joint-owned NSW property
Investment managers Centuria Capital have splashed $127 million on purchasing a building in Adelaide’s CBD.
The eight storey, 3240 square metre building is expected to generate significant new funds for Centuria. The company believes the property at 80 Flinders Street will give a 6.5 per cent return in 2020 and a 6.6 per cent return in 2021.
“The group’s latest acquisition represents another example of our team’s ability to selectively identify quality real estate opportunities in a highly competitive environment,” Company Joint CEO Jason Huljich said.
The building was constructed in 2016 and was recently refurbished earlier this year. 80 Flinders Street currently has an average lease life of four years and its offices are 100 per cent occupied as of today.
“As a market, Adelaide is continuing to transform through a strong pipeline of approximately $130 billion of infrastructure and defence projects, as well as offering attractive fundamentals relative to other core CBD markets,” Jason added.
As of today, 95 per cent of the gross income coming through the Flinders Street Adelaide building is from globally operated and ASX listed occupants.
“We are pleased to be commencing FY20 with a compelling acquisition that builds on $0.9 billion of acquisitions achieved across the Group in FY19 and offering another asset to our deep unlisted distribution network,” he said.
Late last month, Centuria subsidiary, Centuria Industrial announced three separate land purchases in one day.
Two properties in Queensland and one in Victoria represented $59.3 million worth of business bought for a total 46,958 square metres of land.
Two of the purchases were already 100 per cent occupied at purchase, while one is completely unoccupied.
Centuria isn’t just buying up properties however.
Early last month, the company sold its half-interest in NSW property 821 Pacific Highway in Chatswood. The business centre, known as ‘The Zenith’, was sold for a total $438.2 million.
The joint owned property, with fund managers BlackRock, was bought in 2016 for $279.1 million, marking a significant profit for the two owners.
“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,” Jason concluded.
Shares in CNI are priced at $1.84 today in the ASX. After this morning’s open, it underwent a small reduction in pricing of 0.27 per cent.
The company’s market cap is currently valued at $707.6 million.
