ASX-listed property manager Centuria Capital has bought a suburban Melbourne office for A$224m (€142.5m) for a newly-launched unlisted single-asset fund.
The new fund, Centuria Government Income Property Fund 4, is seeking to raise A$133m to finance the acquisition of the asset in Footscray from the Grollo family. The office building is 91% leased to Victorian Government departments and agencies.
Jason Huljich, Centuria joint CEO, said: “This will be our largest capital raise to date for a single-asset unlisted fund. In fact, it’s the largest retail equity raise undertaken in Australia for a single-asset fixed-term unlisted fund within the past 15 years.”
Huljich said there was strong appetite for income-yielding investments in the current low-interest-rate environment.
“We continue to witness this strong appetite with the oversubscription of our recent unlisted fundraisings,” he said. “Our unlisted division has executed six capital raises across four single and multi-asset fund mandates in recent months.
“Combined, we have raised over about A$184m to deploy across attractive unlisted real estate opportunities throughout Australasia.”
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