Centuria Capital subsidiary, Centuria Property Funds Limited, and capital partner Lederer Group have exchanged unconditional contracts to acquire Adelaide’s premier office building, 80 Grenfell Street, for A$184.6 million ($139.1 million).
The seller was Blackstone Group, which acquired the asset in 2016 and was the firm’s first major purchase in South Australia, according to the Financial Review.
Centuria’s 50 percent interest will be acquired by the Centuria 80 Grenfell Street Fund, a new unlisted fund to launch in late May. Lederer Group, which is partnering with Centuria on the acquisition, will acquire the other 50 percent interest in the property.
“The transaction continues to deliver on our ambitious growth strategy, with more than A$747 million [$563 million] in organic acquisitions, across the group platform, in FY18 to date. Total assets under management will grow to more than A$4.7 billion [$3.5 billion],” said Paul Lederer, chairman of Lederer Group.
Recently built in 2013, 80 Grenfell Street is a class A building situated above Rundle Place Mall, which is a premium CBD location in Adelaide in immediate proximity to train, bus and tram infrastructure. The asset is 96 percent occupied by Bendigo & Adelaide Bank, Australia’s fifth-largest retail bank.
“Adelaide is enjoying strong economic growth, fueled by a pipeline of large infrastructure projects and recent stamp duty reductions,” said John McBain, Centuria Capital Group CEO. “This enables us to offer attractive forecast returns from this outstanding property, which is home to one of Australia’s leading banks.”
