Centuria Diversified Property Fund receives ‘Recommended’ ratings


Jason Huljich

Centuria Capital yesterday announced that its newest fund, the Centuria Diversified Property Fund (the Fund), has been rated as “Recommended” from both Lonsec and Core Property Research.

The Fund, which was created with the aim of offering investors direct property exposure, combined with daily unit pricing and access to monthly liquidity, has been recognised for its diversified portfolio of properties and for Centuria’s track-record of success managing both listed and unlisted property funds. The Fund is made up of investments in direct property (80%) as well as A-REITs and cash holdings (20%), to provide liquidity to investors.

Currently, the Fund invests in nine of Centuria’s unlisted funds, which own eleven properties in Sydney, Brisbane and Perth. As the Fund grows, it will acquire direct property assets.

Jason Huljich, CEO of Unlisted Property Funds for Centuria, said he was delighted with the ratings. “Our focus over the past 20 years has been on single asset unlisted property funds, and our track record shows we have done this very successfully.”

“We will continue to create unlisted funds, but at the same time we recognise that the high initial minimum investment, and the fact that funds are locked up for a minimum of five years, means that unlisted fixed term funds are not suitable for everyone. It’s also proved to be challenging for an unlisted fixed term fund to be included on approved product lists or platforms due to the short period they are open for investment.

“The Centuria Diversified Property Fund makes direct commercial property investment accessible to more investors, and provides monthly income combined with the potential for capital growth over the long term. Since inception over 12 months ago, the Fund has exceeded its benchmark by 24.93%, delivering a total return of 33.86%.”

The objective of the Fund is to provide investors with tax-effective monthly income and the potential for capital growth, through investing in an open-ended, high-quality, commercial property portfolio, diversified across assets and geographies.

Discussing the Fund’s strategy, Mr Huljich said the aim is to grow the portfolio significantly over the next few years.

“We have identified an initial pipeline of AUD$26.2 million in quality assets that will form the basis of the Fund’s portfolio“ said Mr Huljich.

Managing Director of Core Property Research, Dinesh Pillutla, said a Core Property Research ‘Recommended’ rating denotes that the fund is considered to be suitable for investors seeking a portfolio of well-rated Centuria property investments with monthly distributions and a limited monthly withdrawal feature.

“The main attraction of the Fund lies in its ability to provide investors with an open-ended structure to access Centuria’s investment capabilities, as well as units in funds that were fully subscribed previously, and direct property over time,” said Mr Pillutla.

Mr Huljich said that the difference between the Centuria Diversified Property Fund and other property funds with a similar structure is Centuria’s commitment to active property management.

“We don’t believe in ‘passive’ property investment; we have an in-house property management team, and a track record of adding value to our portfolio at every stage of the investment process. In fact, our ability to identify properties which require intensive asset management to reach their return potential has been key to our success.

“We are asset-specific buyers, because we know that an asset well-acquired and actively managed will outperform – regardless of macro-economic trends. In short, we buy and add value, then exit when the added value is reflected in the sale price,” he said.

In conclusion, Mr Huljich said that he was very confident about Centuria’s newest property investment option.

“We will apply the same investment process and philosophy to the Diversified Property Fund as we have to our other property investment funds over the past 20 years. We have a track record of providing strong returns to our investors, and the diversified Fund is no exception. Receiving a ‘Recommended’ rating from both Lonsec and Core Property Research is vindication of this approach, and we expect to see strong support from financial planners and their clients,” said Mr Huljich.

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