Centuria Diversified Property Fund spends $65.4 million on Bowen Hills office

The third floor office opens to a terrace.

Centuria Diversified Property Fund has made its third direct property purchase this year, picking up an A-grade office in Brisbane’s inner north east Bowen Hills for $65.4 million.

The fully leased complex at 25 Montpelier Road includes 7739 square metres of commercial area, about 10 per cent of which is ground floor retail.

It was developed in 2009 and sits on a 3750 sqm site, with 115 car parks.

In July, gambling agency Ladbrokes committed to a 10-year lease for 3250 sqm of the office component – paying annual rent speculated to be about $565-$575 per sqm.

St Vincent’s Health Australia, the country’s largest Catholic not-for-profit health and aged care provider is also an occupier (St Vincent’s owner occupiers an office across the road from 25 Montpelier Road).

The site was offloaded by GWC Property Group, sometimes reported as Great Western Corporation.

JLL’s Seb Turnbull and Luke Billiau were the marketing agents.

Centuria joint chief executive officer, Jason Huljich, said the acquisition “is in line with the group’s strategy to accelerate AUM [Assets Under Management] growth”

The fund acquired two assets earlier this year – an office at 381 Macarthur Avenue, Hamilton, Queensland, which cost $19.7 million.

It also spent $35 million on the Optus Centre at 10 Moore Street, Canberra, as we reported in May.

“The Fund’s strategy is to buy properties that enhance the quality and diversity of its portfolio and contribute to strong distribution returns for its investors,” Mr Huljich said, adding that Centuria “offers a range of A-REIT and unlisted property fund options for investors and that CDPF offers some of the benefits of both structures”.

“CDPF aims to offer direct property investment and returns similar to those from unlisted property funds, but because it is open-ended and offers some liquidity, it sits on a number of platforms and wrap platforms so is easy for advisers and smaller investors to access.

The complex includes about 7000 square metres of A-grade office area.

“This latest acquisition in Queensland will further diversify the portfolio by adding to our holdings in Brisbane, a market where we expect to see growth ramp up in the next six to twelve months”.

Centuria Capital Group (CNI) has $6.6 billion of assets under management.

Centuria Property Funds Limited, a wholly owned subsidiary of CNI, is the responsible entity for the Centuria Diversified Property Fund.

With the acquisition of the Bowen Hills office, the Diversified Fund has assets under management of close to $200 million.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.