This article is from the Australian Property Journal archive
CENTURIA Property Funds taken full ownership of the 8 Central Avenue, Australian Technology Park building in Sydney’s inner south after acquiring the remaining 50% sub-leasehold interest for $110 million.
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It will be the sole asset in the newly formed syndicate closed-end Centuria 8 Central Avenue Fund No. 2.
Centuria bought the initial 50% stake in 2013 for $99.62 million.
Located 2.5km from the CBD, the property is 100% leased and is home to the Seven Network`s Sydney headquarters, with other tenants including Pacific Magazines and the New South Wales State Government. It a long-term weighted average lease expiry of 11 years by incomes and around 55% of the gross income is secured to 2029.
Centuria CEO – Unlisted Property Funds Jason Huljich said the property had attractive forecast distributions of 8.50% in year 1 and 8.75% in year 2.
He added that the building the building is only five years old and thus has minimal risk of capital expenditure, a key draw card for investors looking for high quality core investment close to the CBD.
“CBD markets currently provide limited acquisition opportunities, coupled with historically low yields. As such, investors are increasingly seeking core office investments in non-CDB markets. The modern construction of the building, its generous floor plates of approx. 3,000 sqm and its strategic location in a prime emerging precinct – which is close to Redfern Train Station, the University of Sydney and Sydney Airport – makes this a high quality investment,” he continued.
Huljich said the state government had recently initiated a sale campaign for some of its assets within the precinct as well as three development sites with the potential to build around 100,000 sqm of new office space.
“We believe that this further development will position ATP as one of Sydney’s premier commercial hubs within close proximity of the CBD. This will further enhance the future prospects for both occupiers and investors alike,” he concluded.
Australian Property Journal
