Centennial sells seed asset
Centennial has sold one of its four seed investments.
The asset manager is banking $54.5 million for the eight level Capital Trust House at McMahons Point.
The buyer is Winten Property Group, a prominent local investor and developer.
The office contains 4328 square metres fully leased to nine groups.
A2 Milk Company, Getty Images, Seymour Whyte are amongst the occupiers. The building is revered in leasing circles for its Sydney Harbour views.
Also with an Anytime Fitness gym, the weighted average lease expiry is 3.3 years.
Stanton Hillier Parker’s Bevan Kenny and Chris Veitch were the agents.
Capital Trust House
Centennial founders Jonathan Wolf and Lyle Hammerschlag paid $22.5m in 2012 for Capital Trust House at 182 Blues Point Road, on the north west corner of Victoria Road – a 1185 sqm site (continues below).
The sale delivers a 20.7pc internal rate of return.
“As our longest held commercial asset, it is a bittersweet moment for Centennial as we look back to where we were as a company when we acquired the property in 2012, to where we are today,” Mr Wolf said.
“Back then we had four assets under our belt valued at $41m and a team of three, including Lyle and myself,” according to the executive.
“Thirteen years later we have now grown to over 50 team members with offices in Sydney, Brisbane and Melbourne and we’ve acquired over 150 assets with funds under management at $2.5 billion,” he added
Centennial head of Funds Management, David Cupit, said the investment had a strong tenant retention rate and that rents were attractive.
“While the One Eight Two Blues Point Road Unit Trust has been a stand-out fund over the years, it has reached its end of life and we’ve divested it at the right time in the property cycle where pricing and opportunity has aligned,” he added.
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