Centuria settles on $106 million unlisted fund, bringing FUM to $4 billion

From

John McBain

Centuria Capital Group (“Centuria” or ASX: CNI) is pleased to announce $106 million acquisition of 1231 Sandgate Road, Brisbane (the “Property”) and CNI total funds under management (FUM) to increase to $4 billion.

Centuria Property Funds Limited (“CPFL”), a wholly owned subsidiary of CNI, has settled the Property for $106.25 million.

The Property was acquired by a new single-asset unlisted property fund (the Centuria Sandgate Road Fund), and is a modern A-grade office building in metropolitan Brisbane that is 100 per cent occupied by a range of government and private sector tenants.

This acquisition is part of an active growth period for Centuria, which included:

  • A successful corporate bond issue in April for CNI, upsized to $100 million due to significant investor demand
  • The capital raise and acquisition of the Scarborough House Fund in April for $72.3 million
  • The merger of Centuria Metropolitan REIT (CMA) and Centuria Urban REIT (CUA) in June, creating the dominant listed metropolitan office REIT on the ASX
  • The acquisition of two additional assets by Centuria Industrial REIT (CIP) for $65 million in June, cementing CIP’s place as the largest pure income-focused industrial REIT on the ASX. This brings CNI’s industrial FUM to over $1 billion.
  • A full year dividend of 7.50 cents per CNI stapled security.

Centuria CEO, John McBain said “This has been a transformational period for Centuria, with the business successfully diversifying our Property Funds Management business and growing market capitalisation.

“We remain on track in relation to FY17 earnings guidance of 10.2 to 10.4 cents per security.

“And there is the potential of further growth in FY18, with continuing low interest rates and the high level of independent activity across our three Property Fund Management platforms: Centuria Unlisted Property, CMA and CIP,” said Mr McBain.

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