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Centuria (ASX:CNI) - Joint CEO, Jason Huljich
Joint CEO, Jason Huljich
Source: Centuria
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  • Centuria Capital Group (CNI) purchases office and agricultural real estate worth $171.8 million in Victoria and South Australia
  • The group aquires a 50 per cent interest in an A-grade office building on 25 Grenfell Street in Adelaide, South Australia for $83.5 million
  • Centuria also acquired a 50 per cent interest in a prime agricultural property at 264 & 318 Copelands Road, Warragul in Victoria for $88.5 million
  • Shares in Centuria are down 0.15 per cent to $3.28 at 12:00 pm AEDT

Centuria Capital Group (CNI) has purchased office and agricultural real estate worth $171.8 million in Victoria and South Australia.

The group acquired a 50 per cent interest in an A-grade office building on 25 Grenfell Street in Adelaide, South Australia for $83.5 million.

Grenfell Street capitalises on strong tenant demand for high-quality A-Grade office space in Adelaide’s premium CBD sector, according to CNI.

Centuria said office lease enquiry levels are moving substantially above pre-COVID levels, with a 42 per cent rise in the year to Q2 2021.

The building is 100 per cent occupied, by income, and comes with a four year weighted average lease expiry (WALE) while being 72 per cent leased to government or blue-chip corporates.

Major tenants include SA Health, PIRSA (Primary Industries), the Minister for Energy and Mining, the Reserve Bank of Australia, JLL, Aurecon, Lipman Karas, and Minter Ellison.

MA Financial’s two diversified real estate vehicles will purchase the remaining 50 per cent stake.

The purchase will result in the formation of a single-asset, unlisted fund, which will be launched in early 2022.

The property will be managed jointly, and the parties will aggressively seek potential value-adding possibilities that suit each group’s investment criteria.

Centuria also acquired a 50 per cent interest in a prime agricultural property at 264 & 318 Copelands Road, Warragul in Victoria for $88.5 million.

The Warragul property is leased to Flavorite Hydroponic Tomatoes, part of the Flavorite Group, which serves blue-chip retailers Coles, Woolworths, Aldi, CostCo, and Harris Farm. It is a premium, investment-grade agricultural property with a 20-year “triplenet” lease back commitment that provides a consistent revenue stream.

CNI will buy half of the Warragul property, while Flavorite Group will keep the other half. CNI is required to buy the remaining shareholding on the same conditions within six months. During this time, Centuria is expected to form a new fund vehicle that would eventually hold the whole asset.

The asset comes with a 100 per cent occupancy rate by income and a 20-year WALE.

Both properties will be debt-funded, with Centuria joint CEO Jason Huljich saying the assets illustrate Centuria’s strong transactional capabilities.

“They are both good examples of Centuria using its balance sheet capacity to
encourage new fund initiatives and to accelerate growth in assets under management,” he said.

Shares in Centuria are down 0.15 per cent to $3.28 at 12:00 pm AEDT.

CNI by the numbers
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