Centuria launches unlisted property fund
Centuria Property Funds has launched unlisted fund, Centuria Sandgate Road Fund, which is expected to benefit from projected improvement in Brisbane office market fundamentals.
The fund would own 1231 Sandgate Road in Nundah, a classified as A-grade office, which was acquired for $106.25 million last week.
It would be expected, along with other acquisitions made this financial year, to increase Centuria Capital’s total funds under management (FUM) by $457 million to $3.8 billion.
The initial term of the trust would be six years, with a forecast distribution of 6.5 per cent in year one and seven per cent in year two.
According to Centuria’s chief executive, unlisted property funds, Jason Huljich, the property would be ideally suited to long-term investors.
“The property is 81 per cent leased to Queensland Government-owned entities, with a very long WALE [weighted average lease expire] of 9.3 years, so investors can feel confident that the projected yield is not only attractive but also secure,” he said.
“There is also the added benefit of expected capital growth, as Nundah continues to expand and the Brisbane office market improves.”
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