Centuria takes hit on ACT, Queensland offices

The Maroochydore office at the corner of Market Lane and South Islander Sea Way.

Centuria has sold two A-grade offices – in Canberra and Maroochydore – for losses on 2019 and 2021 purchase prices.

The former Horton Park Golf Course is being replaced with buildings.

Interestingly, the asset which cost less is returning more.

The Commonwealth Bank anchors Foundation Place.

Total proceeds – $53.8 million – will be used to reduce gearing of the Diversified Property Fund which held them to approximately 28 per cent.

Both results were in line with valuations, the buyer said in a statement.

“The fund is now in a stronger position to facilitate the approaching liquidity event in December 2025,” it added.

A Mulgrave, Melbourne, asset is set to be listed soon.

If that trades, the unlisted CDPF will hold six properties worth a total $140m – just over half (55pc) weighted to office, 36pc to industrial and nine per cent essential services.

Queensland trumps ACT

In Maroochydore, the Commonwealth Bank of Australia backed Foundation Place (pictured, top) is collecting $27.3m.

Primewest, which Centuria took over in 2021, paid Evans Long $31.187m for 8 Market Lane in early 2021, as construction was nearing completion.

Over eight floors, it contains 3805 sqm of office area and 818 sqm of retail – all of which is fully leased, 79 car parks, end of trip facilities and a rooftop terrace.

The office was the first completed in Maroochydore’s $430 master-planned Central Business District which is replacing the 60 hectare ex-Horton Park Golf Club council acquired for $42m in 2015 (but started negotiating to buy 11 years earlier).

Upon completion in two decades, it should contain 150,000 sqm of offices, 65,000 sqm of retail, and some 4000 apartments (story continues below).

Quintessential sold 10 Moore St for $35 million after paying $18m five years earlier then renovating.

A 250 suite hotel and entertainment zone also forms part of the master-plan.

One of two medical centres Centuria recently sold, in Perth.

ACT out of favour

Meanwhile, Centuria has sold 10 Moore St, Canberra, after five years.

Also known as the Telstra Centre, the six level, 6709 sqm building fetched $26.5m.

It paid $35m to Quintessential which had just undertaken a major renovation.

It was also 98pc occupied to 14 tenants with a weighted average lease expiry of 4.3 years.

The site spreads 1554 sqm.

The disposals follow Centuria just selling two Western Australian medical centres held three and a half years.

Unlike the offices, both sold for minor premiums on their purchase price – a total $20.95m.

CBRE’s Jack Morrison and Adelaide O’Brien sold Market Ln for Centuria.

JLL’s Tim Mutton and Dean Faganello brokered the Canberra sale.

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Marc Pallisco

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