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New Zealand investors have the opportunity to diversify into the Australian commercial real estate market with an unlisted single asset fixed term fund from Centuria Capital Group secured by a NZ $ 240 million office building in Melbourne, Victoria.
The Centuria Government Income Property Fund (CGIPF) will acquire the fully leased 20,191 m² Class A office building located in the inner Melbourne suburb of Footscray. It has a Weighted Average Lease Expiry (WALE) of 11.8 years and 91% of rental income comes from Victorian government and state-owned entities.
Mark Francis, CEO of Centuria NZ (formerly Augusta), said the offer is an example of how New Zealand investors can benefit from the size and purchasing power of the listed Trans-Tasman platform. to the ASX-200 with approximately A $ 16.8 billion in assets. under management.
Mr. Francis said: “The merger of Centuria and Augusta last year allows us to benefit from a larger balance sheet to acquire assets on a larger scale for our New Zealand real estate funds, as well as offering Kiwi investors have the opportunity to diversify into high quality, institutional quality companies. Australian funds.
The office building, located at 1 McNab Avenue, Footscray, was constructed in 2014 and comprises nine levels of office space with high quality rental amenities, four levels of secure parking and boasts strong sustainability credentials including 5.5 star NABERS energy. and water ratings and a 5 star Green Star rating.
In addition to tenant covenants, the building’s six leases provide for fixed annual rent increases of between 3.5% and 4.0%, which will lead to growth in built rents.
New Zealand based investors can participate in the CGIPF opportunity with a minimum investment of A $ 50,000. The Syndication and Investment Products division of Bayleys Real Estate markets the CGIPF offer in New Zealand.
The Fund expects an annualized pre-tax distribution return of 5.25% for fiscal 2022, rising to 5.35% the following year, with monthly payments. Details of planned distributions and the risks associated with the investment can be found in the product disclosure statement available at www.centuriainvestments.co.nz.
Jason Huljich, Co-Managing Director of Centuria Capital Group, said: “Centuria has 22 years of experience providing successful unlisted fixed-term funds. In this low interest rate environment, there is a strong appetite from retail investors on both sides of Tasman who are looking for high quality investments with attractive returns. This results in the oversubscription of the Group’s recent unlisted fundraising.
“Footscray is benefiting from significant investments in infrastructure, expanding government services and strong residential demand. This gentrification is expected to double the neighborhood’s population by 2041. In short, 1 McNab Avenue is a high-quality asset, with strong tenant commitments, positioned in a neighborhood in demand.
The Victorian government identified 1 McNab Avenue as the first government work as part of its new government work premises. He established five government work centers for the Victorian civil service in the Melbourne metropolitan areas to bring workers closer to their homes. The poles will welcome up to 2,380 civil servants each week.
So far this year, Centuria NZ has completed two significant capital increases in New Zealand. The first was for a single-asset fund, which acquired the NZ $ 178.3 million Visy glass bottling complex in Penrose, Auckland.
In addition, he raised $ 80 million for Augusta Industrial Fund Limited (AIF), which provided balance sheet capacity for other acquisitions, including a brand new large-scale Class A industrial facility in Auckland, a portfolio of eight Auckland industrial properties with eight one-year triple net leases and a modern and well-located warehouse in Christchurch offering a seven-year lease.
These acquisitions will increase the total value of AIF’s portfolio to over NZ $ 547 million, spread across 21 properties and 52 tenants. A small number of shares of Augusta Industrial Fund Limited also remain available through Bayleys, visit www.augustaindustrialfund.co.nz
for more information.
Article provided by Centuria Capital Group
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New Zealand
Bayleys is New Zealand’s largest full-service real estate company. We offer expertise in the marketing and sale of a wide range of properties, including residential real estate, farm and lifestyle blocks, and commercial and industrial property. This includes tourist and commercial sales such as hotels and motels. We also cover the real estate markets of Fiji and the other Pacific Islands.
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