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Joint CEO, Jason Huljich
Centuria joint CEO Jason Huljich. Source: Centuria
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  • Centuria Capital Group (CNI) has obtained a $62.75 million office building in Port Adelaide for its new single-asset close-ended unlisted real estate fund
  • Centuria Joint CEO Jason Huljich says they remain confident in Australia’s metropolitan and near-city office markets
  • The fund will have a five-year initial term, with a predicted starting distribution yield of 5.25 per cent in 2022, increasing to 5.30 per cent in 2023
  • The target equity raising for the fund is $35 million which is planning to launch on October 25, 2021, and end on November 19, 2021
  • Centuria completed Australia’s largest single-asset retail capital fundraiser last month raising $133 million for a $224 million office building in Footscray

Centuria Capital Group (CNI) has obtained a $62.75 million A-Grade office building at 21-25 Nile Street in Port Adelaide, South Australia, for its new single-asset close-ended unlisted real estate fund, Centuria Government Income Property Fund No. 2.

With an 11.1-year weighted average lease expiry (WALE) and fixed annual rent reviews of roughly three per cent p.a, the property is 100 per cent occupied by Shared Services SA (94 per cent) and Urban Renewal Authority (six per cent).

The Nile Street property was finished in 2018 and has a NABERS energy rating of 6-Stars and a Green Star Design certification of 6-Stars.

Centuria Joint CEO Jason Huljich said they remain confident in Australia’s metropolitan and near-city office markets, especially those that benefit from long-term Government-backed infrastructure.

“The high-quality Nile Street office building is situated in the heart of the State-backed Port Adelaide Rejuvenation Project, a 20-year regeneration initiative that is anticipated to attract up to 8,000 additional residents and 1,500 construction jobs,” he said.

“Additionally, Port Adelaide is the gateway to the Federal Government-backed Osborne naval shipyard, which will deliver $90 billion of naval defence infrastructure throughout a 50-year pipeline.

“Nile Street provides a compelling investment proposition, providing strong tenant covenants and resilient revenue streams. Additionally, its exemplary sustainable features, and being a young property, prevents capital expenditure leakage, providing value for investors.”

The unlisted fund will have a five-year initial term, with a predicted starting distribution yield of 5.25 per cent in 2022 and increasing to 5.30 per cent in 2023.

The target equity raising for the fund is $35 million which is planning to launch on October 25, 2021, and end on November 19, 2021.

Centuria conducted Australia’s biggest single-asset retail capital fundraise in three weeks in August 2021, generating $133 million for a $224 million A-Grade office complex in Footscray, VIC, which is 90 per cent leased to the Victorian Government.

The new fund seeks to build on the success of Footscray with a high-quality, long-term office acquisition in Port Adelaide, while also growing Centuria’s $11 billion unlisted real estate platform.

“Launching a second government-backed income real estate fund caters to the strong appetite for high-quality income streams for our 12,000-investor network and delivers on our strategy to provide quality, decentralised office investment opportunities,” Mr Huljich said.

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