Centuria announces Lederer Group as new wholesale partner in St Leonards acquisition


Jason Huljich

Centuria Capital Group (CNI) has announced that the Lederer Group will partner with Centuria Metropolitan REIT (CMA) and acquire the remaining 50% interest in 201 Pacific Highway, St Leonards in Sydney, NSW.

CMA acquired its 50% interest in the $172 million property in December 2017.

The Lederer Group was founded by Paul Lederer and comprises of a conglomerate of entities including property, manufacturers, financial investments and community based developments.

The transaction is scheduled to settle by 10 May 2018.

Further diversifying funding sources

The deal brings Centuria’s unlisted wholesale assets under management (AUM) to $407 million of a total $4.6 billion AUM, delivering on its strategy to actively broaden capital sources beyond the existing investor base.

As Centuria’s Head of Real Estate and Funds Management Jason Huljich explains, the business is delighted to be able to build on its strong relationship with the Lederer Group.

“Since first partnering with us in 2014 with a significant interest in CMA, the Lederer Group has grown into one of our largest supporters. It has investments in excess of $195 million across CMA, Centuria Industrial REIT (CIP), CNI and now our wholesale funds business.

“As a highly respected, prominent real estate investor, the Lederer Group shares our passion for property and appetite for growth. This support, along with that of our strong existing investor base, puts us in a great position to do what we do best – leverage our solid real estate credentials to isolate pockets of value and generate positive returns for our investors.”

Paul Lederer, Chairman of the Lederer Group said: “We are pleased to expand on our strong relationship with Centuria through our wholesale investment in this high-quality metropolitan office asset.”

“Our continued investment in Centuria over the past four years is testament to our confidence in its property funds management platform, and we look forward to further building this relationship in the future.”

Growing our high-quality property portfolio in key locations

The acquisition consolidates Centuria’s footprint in the strongly performing NSW metropolitan office market, with 201 Pacific Highway adjacent to the group’s existing asset at 203 Pacific Highway, St Leonards.

Both buildings are A Grade, quality assets and well located above the St Leonards rail station with significant in-place amenity.

Mr Huljich said: “We believe St Leonards has significant potential as a metropolitan office market, with Sydney’s north shore experiencing tightening vacancy rates, limited supply and strengthening rentals.

“This is reflected in recent leasing deals, which have seen a solid uplift in rents in the area. This includes Cardno’s recent 10-year lease renewal at Centuria’s adjoining asset 203 Pacific Highway across 3,503sqm, or 30% of the building, for a record $620 psm net.”

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