- Transaction exchanged for a 50% interest in 680 George Street and 50 Goulburn Street, Sydney
- A-Grade offices secured c.60% below estimated replacement cost1; $268m equity raise
- Counter-cyclical opportunity: 7.5%pa initial forecast distribution yield2, 90% tax deferred in FY273, five-year term4
- Centuria’s largest single-asset unlisted fund underpinned by acquisition; 4.0-year WALE5, 93.4%
occupancy6
Centuria Capital Group (ASX: CNI or “Centuria”) has exchanged sales contracts to acquire a 50% interest in A-Grade Sydney CBD office buildings located at 680 George Street and 50 Goulburn Street, Sydney NSW for $454million7 with the transaction underpinning the single-asset unlisted Centuria Sydney CBD Prime Office Fund (CSPOF of “The Fund”).
The acquisition will be secured at a c.60% discount to estimated replacement cost1 and provides a capitalisation rate of 7.5%, reflecting an attractive proposition compared to recent Sydney CBD office transactions. Centuria has offered the Fund to its investor network, including private capital and institutions with an equity raise of approximately $268 million. In addition to Centuria’s domestic investor base, the offer has been well supported by Japanese-based institutional investors.
The Prime Sydney CBD office assets are integrated within the World Square mixed-use precinct, providing 67,700 sqm of NLA across 45 levels with a 4.0-year WALE4 and 93.4% occupancy5. Anchor tenants include NSW Government departments, and other national and multinational occupiers.
The opening of the Gadigal – Sydney Metro Station has been an important driver of the revitalisation of Midtown, serving around 15,700 passengers a day since its opening in 20248.
Jason Huljich, Centuria Joint CEO, said “We are deploying capital into a repriced Australian office market, where dislocation has created a window to acquire an institutional-grade CBD asset significantly below replacement cost and at an attractive income yield. New supply is structurally constrained, while existing stock continues to be withdrawn or repositioned, reinforcing the medium-term outlook for prime assets.
“The Fund provides a rare opportunity for everyday Australian investors to share direct ownership in a high-quality Sydney CBD building with a strong and diverse tenant profile, embedded rental growth and reversion potential. This purchase is the latest in a series of increasingly larger property acquisitions we have made, our two previous acquisitions totalling $216 million and $168 million, respectively, and our intention is to continue to scale-up acquisition size to underpin Centuria’s AUM growth.”
Andrew Essey, Centuria Chief Investment Officer, said, “This is an unparalleled opportunity to secure a high-profile, Prime Sydney CBD asset acquired at a compelling price point, supported by strong tenant demand and improving sector tailwinds. The Sydney CBD office market continues to outperform wider national office markets as it’s exposed to Australia’s largest white-collar workforce, leading to the strongest net absorption across all major Australian cities in 2024 and 20259.
“Additionally, the Midtown precinct has been the outperformer over this period, recording the highest net absorption of all Sydney CBD precincts. Midtown is undergoing a renaissance, benefitting from improved connectivity via the new transport nodes, particularly along the CBD’s spine, through which the light rail and Metro run. The asset sits on the doorstep of the World Square Shopping Centre, offering an exceptional dining and retail experience with 45 food and beverage outlets, 100 retail shops and a Coles supermarket, attracting more than 24 million visitors per year.”
With a George Street address, World Square has immediate access to the light rail and is in close proximity to the new Gadigal Metro station, and the Town Hall and Museum train stations.
Centuria Sydney CBD Prime Office Fund will provide an initial five-year term4 with an initial forecast distribution of 7.50%pa2, paid monthly10. Forecast returns are anticipated to be 90% tax deferred in FY273. Investments start from $100,000. Settlement is anticipated in Q1 FY27.
The Prime buildings provide a 5-star NABERS energy rating, 6-star NABERS waste rating and 4-star Green Star performance rating. Premium end-of-trip facilities include 193 bike racks, 380 lockers, 33 showers and an upgraded wellness studio. There is onsite parking for 348 vehicles across seven levels.
As part of its $20billion+ real estate portfolio, Centuria manages 63 office buildings worth $6billion throughout
Australia and New Zealand on behalf of listed and unlisted funds11.
Centuria is acquiring its 50% interest in the asset from a fund managed by Brookfield while the remaining
50% interest is held by a domestic real estate investment management group.
1 Based on assumptions included within an independent valuation provided by Knight Frank dated 31 March 2026 as well as internal assumptions made by Centuria.
2 The distribution forecast is for the first two financial years from the assumed settlement date of the property on 1 September 2026 to 30 June 2028. Forecast distributions shown are annual and pre-tax. The forecast distribution rate is predictive in nature and is subject to assumptions, risks and circumstances (both known and unknown) outside of the control of the Fund. These assumptions include that all tenants will satisfy their contractual obligations under their respective leases within a timely manner, and there are no significant unforeseen capital costs or material changes to the Fund’s financial obligations. The actual returns may differ from the target/forecast return. Centuria does not guarantee the performance of the Fund, the repayment of capital or any income or capital return. Past performance is not reliable indicator of future performance. In addition, given the current volatility in interest rate forecasts, should interest rates normalise at higher (or lower) than forecast levels, target/forecast distributions may be revised.
3 Projected tax deferred distributions are estimates only and subject to Australian taxation law and the Fund’s future performance. Tax deferrals will reduce an investor’s cost base for CGT purposes.
4 The Fund term may be extended – refer to the terms in the PDS and IM.
5 Weighted Average Lease Expiry (WALE) by income as at 1 September 2026 including leases that are under heads of agreement and the two-year rental guarantee across the remaining vacancy.
6 Occupancy by income as at 1 September 2026 including leases that are under heads of agreement. There is a two-year rental guarantee across the remaining vacancy.
7 Acquisition is subject to satisfying conditions precedents including ACCC approval, and FIRB approval if required
8 Source: Sydney Metro.
9 Midtown recorded approximately 33,000 sqm of net absorption in 2025, the strongest of all Sydney CBD precincts. Source: JLL Research 2026.
10 Distributions will be paid if declared by Centuria Property Funds No. 2 Limited ACN 133 363 185 AFSL 340304 (Centuria) as the responsible entity for the Centuria Sydney CBD Prime Office Fund ARSN 696 580 533 (Fund) and will be subject to the terms, assumptions and risks set out in the Product Disclosure Statement (PDS).
11 As at 31 December 2025.
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