Centuria Acquires 10 Moore St Canberra
The unlisted Centuria Diversified Property Fund has made its second acquisition, snapping up a Moore Street office building in Canberra for $35 million from Quintessential.
10 Moore Street is a six-level commercial office building with 6,709sqm and 42 car parking spaces.
Quintessential acquired the asset in 2014 from AMP Capital for $18M, providing Quintessential an 11.5% initial yield. At the time the asset had an 8% vacancy factor and an opportunity to refurbish and remix the tenant base in the building. Quintessential were familiar with the Canberra market having previously acquired 14 Moore Street and Penrhyn House at a time when other investors were negative on Canberra.
Quintessential completed the refurbishment with upgrades to lifts, lobbies and bathrooms, a fresh exterior paint, and a full regeneration of its base building plant and equipment to increase its NABERS Base building Energy rating to 5.0-stars.
The property is now 100% leased with a net passing income $2,393,177 underpinned by 14 tenancies providing a diversified tenancy a 4.5yr average lease expiry. The sale price represents provides a 6.65% yield to Centuria.
Quintessential sold its 14 Moore Street property in March 2019 to Marprop on a 7.1% yield whilst the nearby 16 Mort Street building was sold by Oxford to Charter Hall Long Wale REIT for $105m on a 5.8% yield.
The 10 Moore St transaction was brokered by JLL and Colliers.