groundbreaking-centuria-direk-adelaide-feature
Left to Right, representatives from Centuria, City Of Salisbury Mayor, Gillian Aldridge OAM, Apex, and Samaras. Image: Supplied.
  • Office acquisition: 25 Grenfell St, Adelaide. Value $83.3M
  • Agricultural acquisition: 264 & 318 Copelands Road, Warragul, Victoria. Value $88.5M
  • Divestment of 99 Quill Way, Henderson, WA, for $10.5M

Centuria has recently announced activity across the country, with two acquisitions, one divestment, and a groundbreaking ceremony.

Office acquisition

Centuria Capital Group (ASX: CNI) announced today that it acquired an A-Grade Adelaide office building in a 50:50 joint venture with MA Financial Group.

CNI and MA Financial committed $83.3 million each to the acquisition of 25 Grenfell Street, Adelaide, the building is known locally as “The Black Stump.”

25 Grenfell Street, Adelaide SA
25 Grenfell Street, Adelaide SA. Image: Supplied.

It is considered a landmark within Adelaide’s CBD skyline. Approximately 72% of the asset’s gross income is underpinned by government and blue-chip multinational professional corporations, providing a four-year Weighted Average Lease Expiry (WALE) and circa 90% occupancy.

Major tenancies include SA Health, PIRSA (Primary Industries), Minister for Energy and Mining, Reserve Bank of Australia, JLL, Aurecon, Lipman Karas and Minter Ellison. The latter recently renewed for a seven-year term.

Agricultural acquisition

CNI acquired a 50% interest in 264 & 318 Copelands Road in Warragul, Victoria, and is currently leased to Australia’s largest glasshouse operator, Flavorite Hydroponic Tomatoes, part of the Flavorite Group, which supplies blue-chip retailers including Coles, Woolworths, Aldi, CostCo and Harris Farm.

CNI said that the acquisition is a premium, investment-grade agricultural property, providing a stable income stream with a 20-year “triple-net” lease back covenant.

The remaining 50% interest will be held by Flavorite Group, CNI said it has an obligation to acquire the remaining interest on the same terms within a six-month period. During this period, it is anticipated that Centuria will establish a new fund vehicle which, it is planned, will own the entire asset.

Divestment

Centuria Industrial REIT (ASX: CIP) announced that a contract has been entered into for the divestment of 99 Quill Way in Henderson, WA.

The property sale price fetches a 16.7% premium to its 30 June 2021 book value of $9 million; the sale price is $10.5 million.

99 Quill Way is a 16,419sqm warehouse facility, on a 3.2-hectare site. The property is being sold as vacant possession.

CIP said proceeds from the sale will initially be used to repay debt. Settlement is expected in December this year.

Groudbreaking

Centurial Capital Group (ASX: CNI) yesterday held its groundbreaking ceremony for an industrial development in Direk, South Australia.

The $38.25 million development is a joint development with Samaras Group.

The groundbreaking event signified a construction milestone in the development of the 22,000sqm industrial facility, which sits within a 5.4-hectare site at 36 Caribou Drive, Direk. The property will be constructed by local Adelaide builder, Sagle Constructions.

Groundbreaking_51CaribouDrDirekSA_Centuria, Mayor Aldrige, Apex, Samaras
Left to Right, representatives from Centuria, City Of Salisbury Mayor, Gillian Aldridge OAM, Apex, and Samaras. Image: Supplied.
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