ASX-listed investment manager Centuria Capital Group has sold an office building in Parramatta in Sydney’s West to an unnamed Asian institutional investor – believed to be from Singapore – for A$105.3m (€65m).
The office tower was held in an unlisted Centuria property fund which acquired it from Charter Hall in 2014 for A$45.1m Centuria said that the property had been sold following completion of the fund’s five-year term.
Centuria joint CEO, Jason Huljich, said investors would receive a total return of 186% from the fund, including an average distribution return of 9.2% per annum.
“The internal rate of return from the fund over its five-year term is approximately 25%,” he said.
The Parramatta office market had benefitted from improving infrastructure links, the decentralisation of NSW government departments, and overall gentrification of the area, Huljich said, adding that the A-grade office vacancy was below 1% when Centuria acquired the asset.
“We will continue to look for quality property assets where we believe we can add value and produce strong income and capital growth returns for investors,” he said.