Centuria Diversified Acquire Bowen Hills Asset
Centuria today announced the purchase of 25 Montpelier Road, Bowen Hills, Queensland for $65.4 million from GWC Property Group.
The A-grade office, purchased by Centuria Diversified Property Fund is the third direct property purchase by CDPF this year, and will take the Fund’s total assets under management toward $200 million.
Bowen Hills is located on the fringe of the Brisbane CBD, and 25 Montpelier Road is within walking distance of the Bowen Hills train station, as well as the lively Gasworks precinct with its mix of popular restaurants, bars, shops and greenspaces.
The property, which was developed in 2009, is 100% leased and has a 6.0-year weighted average lease expiry (WALE) (as at 1 December 2019). The property has approximately 7,000sqm of office space and an additional 700 sqm of ground floor retail.
Our estimate of the equivalent market yield for this asset is around 5.9% based on an average net face rent of $500/sqm.
Commenting on the purchase, Centuria’s Joint CEO, Jason Huljich, said it is in line with the group’s strategy to accelerate AUM growth, and with the Fund’s strategy to increase its balance of direct property exposure for its investors following on the heels of two acquisitions earlier this year – 381 Macarthur Avenue, Northshore Hamilton, QLD for $19.7m, and 10 Moore Street, Canberra for $35.0m.
“This latest acquisition in Queensland will further diversify the portfolio by adding to our holdings in Brisbane, a market where we expect to see growth ramp up in the next six to twelve months. Vacancy rates are falling, net absorption is up, and this means that effective rental growth is very likely to follow, particularly as infrastructure projects currently in the works start to come online,” Mr Huljich said.
JLL Managed the sale on behalf of GWC Property Group.