The Centruia Metropolitan Office Trust secured 2 new additional office assets this week in the acquisition ofa 50% interest in 8 Central Ave, Everleigh (pictured above) and 100% of William Square, Northbridge WA in a total deal size of $380.5m.
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The 50% interest in 8 Central Avenue is being acquired from Centuria 8 Central Ave Fund, a closed-end unlisted fund managed by CPFL which has reached the end of its investment term.
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The A-grade office building, completed in 2010, comprises 10 upper office levels including multiple television broadcasting / recording studios; a ground level lobby, café and retail suite; and basement and mezzanine level parking (700 cars). The building is 100% occupied with 87% of income underpinned by ASX-listed, government or national tenants, predominantly the Seven Network. The property was acquired on a cap rate of 5.4%.
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The property sits opposite the Mirvac / AMP Capital development which will be home to the Commonwealth Bank of Australia, with the first two buildings recently completed and a third targeting completion in FY20. CBA is expected to bring a workforce of ~10,000 to the precinct.
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In Western Australia, the acquisition of William Square in Northbridge provides the Trust with further geographic diversification and an exposure to the WA economy, taking the funds exposure from 6% to 16%.
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The A-grade office building was completed in 1992 with approximately $25 million spent in a recent refurbishment, including all building services. The asset comprises five upper office levels with floorplates ranging from 3,400–4,100 sqm; a ground level lobby and retail suites; and basement level parking (128 cars).
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The asset is fully leased to the Federal Government (67% of by income), State Government (13%) and WeWork (14%) with a WALE of 3 yrs. The property was acquired on a cap rate of 6.4% from Warrington Property.
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Goldman Sachs backed Warrington’s purchase of the Australian Taxation Office-occupied building for about $101 million from German fund Deka Immobilien Investment in 2015 and then supported $62m of works to overhaul it, effectively connected the building to nearby Yagan Square project and Kings Square developments.
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The Northbridge asset was brokered by Knight Frank and Cushman & Wakefield.