Sentinel snaps up Canberra office

Centuria has sold Scarborough House after five years.

Centuria has sold Canberra’s Scarborough House to Sentinel.

The $83 million deal for the 14-level A-grade office reflects a 7.7 per cent net passing yield.

Fully occupied – 99pc to the Department of Health – the asset contains 16,755 square metres of area and 47 car parks.

The Weighted Average Lease Expiry by income is 4.1 years.

The site, 8 Atlantic Street, Phillip, in the Woden Town Centre, spreads 3335 sqm.

Colliers’ Paul Powderly and Matthew Winter with JLL’s Tim Mutton and Luke Billiau brokered the sale.

One fund to another

Centuria paid $72.3m for Scarborough House in 2016 – retaining it as the only asset in the unlisted Centuria Scarborough House Fund (CSHF).

Sentinel will hold it as the first ACT property in its Regional Office Trust.

The Brisbane-based buyer, for another fund, also owns Homeworld Tuggeranong, in Greenway, about 10 kilometres south of Phillip (story continues below).

Capital raising oversubscribed

Centuria also announced today that a capital raising launched on July 1 to help fund the purchase of a $223.7m Footscray office has closed early due to sufficient demand.

The manager will hold that asset, 1 McNab Avenue, in another single-property trust – the Centuria Government Income Fund.

“Quality assets backed by resilient government tenants form a key acquisition strategy across the Centuria Group, which includes our listed and unlisted funds in both Australia and New Zealand,” joint chief executive officer Jason Huljich said.

Colleague Ross Lees, head of Funds Management, added “the CSHF investment rationale was to provide investors with stable, high yielding income returns from a quality commercial office property suitable in Canberra’s health precinct.

“The fund has achieved this investment mandate providing a highly competitive nine per cent per annum internal rate of return since inception,” according to the executive.

Centuria now holds office assets worth $6.7 billion – 28.5pc leased (by income) to state or federal governments.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of