- Port Adelaide office purchased for $62.75 million
- Melbourne office acquired for $205.1 million
- Sydney acquisition worth $68 million
As lockdowns continue to grip the east coast of Australia and work from home (WFH) remains the mainstay of millions, more than $300 million of office property has been transacted.
CNI buys Adelaide office
Centuria Capital Group (ASX: CNI) has acquired an A-grade Port Adelaide office building for $62.75 million. Located in the heart of Port Adelaide’s urban regeneration precinct, the property will be part of a new single-asset close-ended, unlisted real estate fund, Centuria Government Income Property Fund No. 2.
Completely occupied by the South Australian state government, including 94% Shared Services SA, and 6% Urban Renewal Authority, the property is located at 21-25 Nile Street, and has an 11.1 year WALE and fixed annual rent reviews of circa 3% per annum.
“Centuria remains confident in Australia’s metropolitan and near city office markets, especially those that benefit from long-term Government-backed infrastructure projects,” said Jason Huljich, Centuria Joint CEO.
“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 with the building fully leased to the SA Government…”
COF adds Melbourne and Sydney offices
Centuria Office REIT (ASX: COF) acquired two offices in key near-city and metropolitan Melbourne and Sydney markets for a combined $273.1 million.
Following the acquisition, COF’s portfolio value will increase circa 14% to $2.3 billion, increase WALE from 4.3 years to 4.5 years, and occupancy from 93.1% to 93.7%.
“COF’s portfolio focuses on metropolitan and near-city office markets that provide excellent worker commutability via good public transport nodes and road arterials,” said COF Fund Manager, Grant Nichols.
“These have been better performing office markets throughout the past 12 months, attracting occupiers seeking shorter travel time to and from work at affordable rents.”
COF also announced it will be included in the e FTSE EPRA Nareit Global Index from Monday, 20 September 2021.
The Melbourne acquisition is a 100% interest in 101 Moray Street for $205.1 million on a 5% capitalisation rate. The building is fully occupied with a 6.3 year WAE.
COF’s Sydney acquisition is the remaining 50% interest in 203 Pacific Highway, St Leonards, for $68 million on a 5.75% capitalisation rate. The 99.3% occupied building has a 3.9-year WALE.
Centuria Office REIT already owns a 50% interest in 203 Pacific Highway and has exercised its pre-emptive right after the coowner issued a transfer notice.