Centuria acquires $115 million Geelong building, growing AUM to $4.5 billion

Centuria Capital Group's subsidiary Centuria Property Funds Limited has exchanged contracts on a Geelong office block for $115.25 million.

The deal caps off an active 1H FY18, with $655 million in property assets bought.

The Brougham Street property will be acquired by the Centuria Geelong Office Fund, a new single asset unlisted property fund which will be launched in February 2018.

On settlement, total Centuria assets under management (AUM) will be $4.5 billion. 

The A-Grade building is 100% occupied, with 94% of its income underpinned by a long-term lease to AAA-rated Victorian State Government entity, the Transport Accident Commission (TAC).

Centuria’s property funds management business is led by Jason Huljich.

With the new Geelong fund enjoying a 10-plus year lease to a State Government tenant and a starting distribution of 7% p/a paid monthly, Huljich expects strong demand from Centuria’s investors.

“The building is centrally located in the thriving regional city of Geelong, which is benefiting from the relocation of a number of Government agencies, including WorkSafe and the National Disability Insurance Agency. 

“The acquisition complements our investment philosophy and offers reliable, long term income for investors.”