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CENTURIA CAPITAL GROUP — Capital/Financing Update 2019
Jun 6, 2019
64677_rns_2019-06-06_7dc20885-2673-44f5-b1ed-8435c5afba88.pdf
Capital/Financing Update
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Australian Securities Exchange – Company Announcements Platform
Centuria Capital Group
“The Zenith” sale delivers strong performance fee for CNI
Friday, 7 June 2019
Centuria Capital Group (ASX: CNI or Centuria ) is pleased to announce:
-
Divestment of 100% interest in The Zenith by Centuria Property Funds Limited in conjunction with a fund managed by BlackRock for $438.2 million
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Asset completely repositioned through active management initiatives
o More than 40,000sqm of leasing (58 deals), WALE extended by 72%
- CNI performance fee in excess of $9 million generated
CNI subsidiary, Centuria Property Funds Limited, in conjunction with a fund managed by BlackRock, have exchanged contracts to divest their respective 50% interests in 821 Pacific Highway, Chatswood, NSW (The Zenith) for a total consideration of $438.2 million. The jointly owned A-Grade asset was acquired for $279.1 million in 2016, reflecting the general strength of the market and asset management strategy in enhancing the yield on the property.
Held in the closed-end unlisted Centuria Zenith Fund, proceeds from Centuria’s 50% interest will be distributed to investors following the completion of the sale. CNI expects to generate a performance fee of over $9 million from the sale which will be deployed into real estate and capital management initiatives for Centuria.
Since acquisition in 2016, The Zenith has benefitted from a strategic capital works program including foyer refurbishments, the commencement of lift upgrades and best in class end of trip facilities to improve amenity and provide an attractive destination for tenants in a strengthening suburban office market. During ownership, the 44,102sqm asset has experienced strong repositioning through 58 lease deals across more than 40,000sqm of leasing, achieving 100% occupancy[1,2] and an improved WALE[1,2] from 2.5 to 4.3 years.
Jason Huljich, Head of Real Estate and Funds Management, said: “With support from Centuria’s in house real estate team and national distribution capability, The Zenith represents another example of our ability to identify opportunities and implement value add strategies for real estate with a view to delivering quality assets for our investors and more attractive properties for our tenant customers.”
“Whilst it was originally intended that the property be held over a longer period, buyer interest in the property was extremely strong. Investors in the Centuria Zenith Fund have benefitted from attractive quarterly distribution returns as well as enjoying a substantial capital gain from the sale reflecting the strong rental yield and capital growth driven by extremely strong market conditions. Success for The Zenith has been further underpinned by Centuria’s collaborative approach alongside our wholesale partner, BlackRock, resulting in milestones from the asset plan being achieved ahead of schedule.”
– Ends –
1 Occupancy by area, WALE by income
2 As at March 2019
Level 41, Chifley Tower, 2 Chifley Square, Sydney, NSW 2020
Centuria Capital Group Consisting of: Centuria Capital Limited ABN 22 095 454 336 and Centuria Capital Fund ARSN 613 856 358
T: 02 8923 8923 F: 02 9460 2960 E: [email protected] www.centuria.com.au
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For more information or to arrange an interview, please contact:
Jason Huljich
Head of Real Estate and Funds Management
Centuria Capital Limited Phone: 02 8923 8910 Email: [email protected]
John McBain
Group CEO
Centuria Capital Limited Phone: 02 8923 8910 Email: [email protected]
Tim Mitchell
Group Head of Investor Relations
Centuria Capital Limited Phone: 02 8923 8923 Email: [email protected]
Gigi Shaw
Senior Consultant
BlueChip Communication Phone: 02 9018 8603 Email: [email protected]
About Centuria Capital Group
Centuria Capital Group (CNI) is an ASX-listed specialist investment manager with $6.2 billion[3] of assets under management. We offer a range of investment opportunities including listed and unlisted property funds as well as tax-effective investment bonds. Our drive, allied with our in-depth knowledge of these sectors and intimate understanding of our clients, allows us to transform opportunities into rewarding investments.
www.centuria.com.au
Disclaimer
This announcement contains selected summary information and does not purport to be all-inclusive, comprehensive or to contain all of the information that may be relevant, or which a prospective investor may require in evaluations for a possible investment in CNI. It should be read in conjunction with CNI's periodic and continuous disclosure announcements which are available at www.centuria.com.au.
This announcement is provided for general information purposes only. It should not be relied upon by the recipient in considering the merits of CNI or the acquisition of securities in CNI.
Before making an investment decision, the recipient should consider its own financial situation, objectives and needs, and conduct its own independent investigation and assessment of the contents of this announcement, including obtaining investment, legal, tax, accounting and such other advice as necessary or appropriate.
This announcement may contain forward-looking statements, guidance, forecasts, estimates, prospects, projections or statements in relation to future matters ('Forward Statements'). No independent third party has reviewed the reasonableness of any such statements or assumptions. No member of CNI represents or warrants that such Forward Statements will be achieved or will prove to be correct or gives any warranty, express or implied, as to the accuracy, completeness, likelihood of achievement or reasonableness of any Forward Statement contained in this announcement.
Centuria Property Funds Limited (ABN 11 086 553 639 AFSL 231149), a wholly owned subsidiary of CNI, is the Responsible Entity of the Centuria Zenith Fund (ARSN 612 163 416). Past performance is not a reliable indicator of future performance.
3 Assuming completion of Heathley Limited acquisition.
Level 41, Chifley Tower, 2 Chifley Square, Sydney, NSW 2020
Centuria Capital Group Consisting of: Centuria Capital Limited ABN 22 095 454 336 and Centuria Capital Fund ARSN 613 856 358
T: 02 8923 8923 F: 02 9460 2960 E: [email protected] www.centuria.com.au