Centuria Diversified Property Fund sells off properties in Canberra and Maroochydore
Centuria Capital Group CEO John McBain and Unlisted Property Funds CEO Jason Huljich at the Centuria offices in North Sydney. Picture: Hollie Adams
The unlisted Centuria Diversified Property Fund has sold off properties in Canberra and in Queensland’s Maroochydore at their March book values, for a total of $53.8m, as it readies to deal with its liquidity event next year.
It sold buildings at 10 Moore St, Canberra, and 8 Market Lane, Maroochydore, with both acquired by boutique fund managers, cashing in on the action at the smaller end of the office market.
The ACT building was divested for $26.5m and 8 Market Lane for $27.3m.
Centuria head of funds management Jesse Curtis said the divestments “illustrate strong investment demand for metropolitan and regional offices that are well located providing easy worker commutes, modern office accommodation and end of trip facilities at affordable rents”.
“Both assets are fully occupied by blue-chip tenant customers. The divestments also enable CDPF to rebalance its portfolio construction with a greater exposure to industrial and social infrastructure sectors,” he said.
The portfolio will be trimmed back to six direct properties worth about $140m and the sale proceeds will be used to cut the fund’s gearing to a conservative level of about 28 per cent.
The fund will be weighted at 55 per cent to offices, while industrial will increase to 36 per cent and social infrastructure to nine per cent. It also holds non-direct real estate investments as well as liquid investments.
The Canberra deal was brokered by Matthew Winter and Paul Powderly from Colliers and Tim Mutton and Dean Faganello from JLL. The Maroochydore property was sold via CBRE’s Jack Morrison and Adelaide O’Brien.
The six level office building in Canberra’s Civic precinct is a 6,709sq m block that was recently refurbished and is one of the few in the area with a 5-star NABERS energy rating.
In Queensland, it sold Foundation Place in Maroochydore, with the A-Grade office asset winning interest as it is leased to some of Australia’s most recognised listed and unlisted companies.
The complex spans 4,528sq m and also has a 5-star NABERS energy rating.
Centuria said the sales had reduced the fund’s gearing and put it in a stronger position for an approaching liquidity event in December 2025. It may also consider selling a property in the Melbourne suburb of Mulgrave.
