Centuria Metropolitan REIT announces acquisitions, revaluations and equity raising

From

Nicholas Blake

Centuria Property Funds Limited (CPFL), as Responsible Entity of Centuria Metropolitan REIT (ASX: CMA), is pleased to announce the following:

  • Acquisition of two NSW metropolitan office assets for $119.1 million[1] (Acquisitions);
  • An underwritten[2] accelerated entitlement offer to raise approximately $60 million (Equity Raising) at an issue price of $2.39 per CMA security (Issue Price);
  • Independent valuations providing an uplift of $33.8m driven by strong market fundamentals, active asset management and increased investor appetite for non-CBD office assets; and
  • Entered into an unconditional contract for the sale of 44 Hampden Road, Artarmon for $10.3 million, a 14.4% premium to book value generating an 18.4% IRR since acquisition

CMA Trust Manager, Mr Nicholas Blake commented: “Metropolitan markets are core to Centuria’s DNA, and these acquisitions increase CMA’s exposure to some of the highest performing submarkets in the nation at attractive pricing.”

“We see significant potential in St Leonards, with Sydney’s North Shore experiencing tightening vacancy rates, limited supply and strengthening rentals. St Leonards benefits from these strong fundamentals but has lagged the neighbouring North Sydney and Chatswood submarkets due to significant stock withdrawal for residential conversion. Accordingly, we expect this market to re-position as the residential development cycle abates.”

“Our investment in the A Grade asset 201 Pacific Highway, St Leonards, which is adjacent to CMA’s existing asset at 203 Pacific Highway consolidates our footprint in this near CBD market. Both assets are well-located above the St Leonards rail station with significant in-place amenity.”

“Similarly, 77 Market Street Wollongong is a high-quality, fit-for-purpose building in a well-defined market, anchored by strong commercial tenants.”

“Both acquisitions are highly complementary to our portfolio, and well positioned to deliver value for our securityholders”.

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