Centruia Metro secure 2 Office Assets

18 September 2019

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.


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.


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%.


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.


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%.


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).


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.


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.


The Northbridge asset was brokered by Knight Frank and Cushman & Wakefield.