Centuria Capital Group has come out swinging in the new year by securing a massive office building acquisition in Geelong.
Centuria Property Funds Limited has exchanged contracts to buy the fully occupied A-grade office block at 60 Brougham Street for $115.25 million from the Liberman family-backed Impact Investment Group.
Centuria’s Jason Huljich, who will manage the umbrella under which the A-grade Brougham Street building is now under, said the acquisition is expected to attract major interest from investor thanks to its location and current tenancy.
Currently 100 per cent occupied, the building is home to Victorian State Government entity, the Transport Accident Commission.
Almost all of the tenancy is in it for the long haul, with long-term tenants taking up 94 per cent of the building. The state government currently holds a 10-year lease and a starting distribution of 7 per cent paid monthly.
“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,” Mr Huljich said.
“The acquisition complements our investment philosophy and offers reliable, long term income for investors.”
The building joins an already impressive list of acquisitions in the first half 2018, with Centuria already flashing an FY18 report card of around $655 million of quality, investment grade property assets already acquired. On settlement, total Centuria assets under management will be $4.5 billion.
The property will be acquired by the Huljich-led Centuria Geelong Office Fund, a new single asset unlisted property fund which will be launched in February 2018.