The Centuria Office REIT has entered into an unconditional contract for the sale of its 25% interest in 465 Victoria Avenue, Chatswood NSW for $44.7 million.
465 Victoria Avenue, Chatswood is a fifteen level A Grade commercial office tower, and the most recent large-scale office building completed in the Chatswood central business district.
Centuria acquired the building alongside Paul Lederer from Hines Group for $166.4m in October 2018 on a 5.4% cap rate. The 25% interest held by Centuria Office Fund equated to $41.6m.
For Centuria, a sale at $44.7m is inexcess of their acquisition price and a premium to their 30 June 2020 book value of $41.9 million. Settlement is expected to occur in February 2021.
Grant Nichols, COF Fund Manager, said, “The sale of COF’s interest in 465 Victoria Avenue unwinds the Trust’s only minority interest in its portfolio at a price that reinforces COF’s net tangible assets. Proceeds from the sale will generate increased liquidity and improve COF’s robust balance sheet, which has ample headroom against the loan to value and interest coverage covenants.
“COF remains Australia’s largest pure play office REIT listed on the ASX with a portfolio of 22 high quality assets providing highly connected and affordable office space without single market concentration.”
“COF continues to generate strong income streams with over 80% of portfolio income derived from government, listed and multinational tenants, of which over 25% is derived from Australian Government tenants (Federal and State Government).”
Trading Chart
Related Articles
