Centuria prepares for A-REIT float with trusteeship of North Sydney trophy asset amid expectations of strong 2013 results

Centuria is preparing for a possible July float of its listed property trust after taking over as responsible entity of the North Sydney Property Trust, which comprises the Northpoint Tower office and retail complex in North Sydney.

Northpoint stands at 100 Miller Street at the corner of the Pacific Highway and Miller Street, comprising two retail levels, 32 office floors and a 432 space car park over six basement levels.

It last sold for $114 million in 1987.

The trusteeship was acquired by Centuria's property funds management entity Centuria Property Funds Limited, which controls property assets totalling some $1.1 billion and is led by chief executive Jason Huljich.

It replaced the North Sydney Property Trust (NSPT Pty Ltd), a now de-registered managed investment scheme which has been trustee since developer Terry Agnew took control of the tower in 2008, reported the Australian Financial Review.

Centuria says it is anticipated that the $300 million trust will be the entity which will comprise Centuria’s first listed real estate investment trust to be run by former Mirvac chief executive Nick Collishaw.

"Centuria will now seek to register the trust as a managed investment scheme in preparation for a public listing at some point in the future," Collishaw tells Property Observer.

It is expected that Centuria will seek grow the proposed A-REIT with other acquisitions once it floats.

Centuria chief executive John McBain said that it is pleasing to see solid progress towards our three level property funds management strategy, being direct, listed and wholesale offerings.

McBain told Property Observer in April that Centuria was working very hard sounding out institutional investors and has offers out in the market for a “few hundred million dollars of real estate” which will form the core of the new listed trust.

Centuria also announced this week a “reasonable expectation” that the group profit for the year to June 30 will “exceed the group profit for the previous financial year by a material amount”.

A minimum statutory net profit after tax of $6.9 million is forecast for 2013 compared with $1.97 million in the 2012 financial year.

Centuria also revealed that Centuria Property Funds Limited has successfully closed the capital raising for the Centuria 10 Spring Street Fund and settled the $91.6 million acquisition prior to June 30.