Centuria Capital’s (ASX: CNI), property funds management subsidiary, Centuria Property Funds (formerly Century Funds Management), has purchased a 10 level commercial building at 200 Creek Street, Brisbane for $37.7 million. The vendor of the property is Valad Core Plus Fund.

The building is 100 per cent leased to a mix of quality multi-national and Government tenants which include State Government agency Link Water, international environmental engineers BMT WBM and the multi-national Medtronic Group. The building has recently undergone a refurbishment program that included an extensive foyer and services upgrade.

Centuria has formed a new single asset unlisted property Fund to hold the asset and the forecast initial return is 8.75 per cent increasing to 9 per cent over the life of the Fund.

The acquisition takes Centuria’s property funds under management to $960 million.

CEO of Centuria Property Funds, Mr Jason Huljich said:

“We believe the Brisbane office market is an attractive counter-cyclical opportunity which will experience significant growth in the medium term, assisted by mining and infrastructure spending. 200 Creek Street is well positioned to ride out an initially soft leasing market with a strong weighted average lease expiry (over 5 years) and fixed annual reviews in excess of forecast CPI.”

“Investor interest in 200 Creek Street has been very strong and the offer closed heavily oversubscribed.”

“Centuria continues to pursue an aggressive strategy with regard to property opportunities which exhibit attractive income returns coupled with the potential for strong capital growth. Centuria is now looking at larger acquisitions in the $20 – $100 million range.”

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