Centuria Capital has bought an office block in Adelaide, South Australia – its third office acquisition in as many days – to bring the total of its new investments to A$335.9m (€209m).
The Port Adelaide office building, located at 21-25 Nile Street, has been acquired from a Charter Hall fund for A$62.7m. The asset is leased to the South Australian state government for 15 years.
The asset will be used as seed asset for Centuria Government Income Property Fund No 2, a new single-asset, close-ended fund.
Jason Huljich, Centuria’s joint CEO, said Centuria remained confident in Australia’s metropolitan and near-city office markets, especially those that benefitted from long-term government-backed infrastructure projects.
Centuria’s head of funds management, Ross Lees, added that South Australia’s economy had demonstrated its resilience through the pandemic.
Charter Hall bought the Adelaide property via a fund-through arrangement in 2017, with a then-total completion value of $43.6m.
Charter Hall Direct CEO, Steven Bennett, said the sale provided an opportunity for the group’s unlisted direct fund to realise returns for investors, to re-deploy capital into new acquisitions and to fund existing developments in the Adelaide CBD.
Earlier this week, the Centuria Office Fund bought both a recently completed office building at 101 Moray Street, South Melbourne, for A$205.1m, a residual 50% interest in a building on Sydney’s lower North Shore for A$68m.
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