This article is from the Australian Property Journal archive
CENTURIA Property Funds has scored a major windfall with the $98 million sale of 175 Castlereagh St Sydney to the NSW government, after buying the asset in 2013 from Stockland for $56 million.
The sale has delivered Centuria investors an average income return of 9.5% p.a. and an IRR of 30%.
Transport for NSW has bought the 11,821 sqm property, which along with several other properties will make way for a metro station.
Centuria CEO Jason Huljich said whilst the property was actively marketed in 2012/13 Centuria was one of only a handful of bidders who were prepared to accept the challenge of a building refurbishment and building vacancy of circa 20%.
“The strong sale price and corresponding return to investors was due to a major refurbishment and a concerted leasing push undertaken by Centuria.
“We’re fortunate to be able to pass on to investors the very real benefits of our active management of the asset to secure maximum value. Acquisition by a statutory authority does not always spell an ideal scenario for investors but in this case the value added to the property between its purchase in 2013 and its sale in 2015 was very real, and in the public sale process, was recognised as such by the bidders,” Huljich said.
The sale process, headed by Collier’s Vince Kernahan and Guillaume Volz, received more than 14 offers.
Australian Property Journal
