CENTURIA CAPITAL GROUP — Capital/Financing Update 2021

Sep 7, 2021

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Centuria Capital Group (CNI)
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$63m Port Adelaide Office Acquisition

• High-quality, A-grade commercial building, 100% occupied, 11.1-year WALE

• 6-Stars NABERS energy rating, 6-Star Green Star Design rating

• Secured for single-asset, closed-ended unlisted fund, five-year term, 5.25% starting distribution

• • Follows success of Centuria Government Income Property Fund (CGIPF)

SYDNEY (Wednesday, 8 September 2021) – Centuria Capital Group (ASX: CNI or “Centuria”) secured a $62.75million, A-Grade modern office building at 21-25 Nile Street, Port Adelaide, SA, for its new single-asset close-ended, unlisted real estate fund, Centuria Government Income Property Fund No. 2 (CGIPF2)[1] .

The building is 100% occupied by Shared Services SA (94%)[2] and Urban Renewal Authority (6%) with a 11.1year Weighted Average Lease Expiry (WALE) and fixed annual rent reviews of c.3.00%p.a[3] .

The Nile Street asset was completed in 2018 and provides a 6-Stars NABERS energy rating and 6-Star Green Star Design rating.

Jason Huljich, Centuria Joint CEO, said, “Centuria remains confident in Australia’s metropolitan and near-city office markets, especially those that benefit from long-term Government-backed infrastructure projects. The high-quality Nile Street office building is situated in the heart of the State-backed Port Adelaide Rejuvenation Project, a 20-year regeneration initiative that is anticipated to attract up to 8,000 additional residents and 1,500 construction jobs.

“Additionally, Port Adelaide is the gateway to the Federal Government-backed Osborne naval shipyard, which will deliver $90billion of naval defence infrastructure throughout a 50-year pipeline. Nile Street provides a compelling investment proposition, providing strong tenant covenants and resilient revenue streams. Additionally, its exemplary sustainable features, and being a young property, prevents capital expenditure leakage, providing value for investors.”

CGIPF2 will have an initial five-year term[4] , delivering a forecast starting distribution yield of 5.25%[5] in 2022, rising to 5.30%[5] in 2023. CGIPF2 has a target equity raise of $35million. The fund is expected to open from Monday 25 October 2021 and anticipated to close on Friday 19 November 2021.

In August 2021, Centuria completed Australia’s largest single-asset retail capital fundraise[6] within three weeks, raising $133million for a $224million A-Grade office building in Footscray, VIC, which is more than 90% leased to the Victorian Government. CGIPF2 aims to replicate the Footscray success with the highquality, sustainable Port Adelaide office acquisition while expanding Centuria’s $11billion unlisted real estate platform.

Mr Huljich concluded, “Launching a second government-backed income real estate fund caters to the strong appetite for high-quality income streams for our 12,000-investor network and delivers on our strategy to provide quality, decentralised office investment opportunities.”

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For more information or to arrange an interview, please contact:

Jason Huljich	Tim Mitchell	Alexandra Koolman
Joint CEO	Group Head of Investor Relations	Group Communications Manager
Centuria Capital Limited	Centuria Capital Limited	Centuria Capital Limited
Phone: 02 8923 8923	Phone: 02 8923 8923	Phone: 02 8923 8923
Email:jason.huljich@centuria.com.au	Email:tim.mitchell@centuria.com.au	Email:alexandra.koolman@centuria.com.au

Announcement authorised by Anna Kovarik, Company Secretary .

Centuria Capital Group Consisting of: Centuria Capital Limited ABN 22 095 454 336 Centuria Capital Fund ARSN 613 856 358

Level 41, Chifley Tower T: 02 8923 8923 E: sydney@centuria.com.au 2 Chifley Square, Sydney NSW 2000 F: 02 9460 2960 www.centuria.com.au

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Centuria Capital Group (CNI)
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About Centuria Capital Group

Centuria Capital Group (CNI) is a leading real estate funds manager with a unique Australasian focus and more than $17 billion of assets under management. We offer a range of investment opportunities including listed and unlisted real estate 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 meaningful investments.

www.centuria.com.au

DISCLAIMER

Centuria Property Funds No. 2 Limited ABN 38 133 363 185 AFSL 340 304 (CPF2L) intends to register the Centuria Government Income Property Fund No.2 (Fund) with the Australian Securities and Investments Commission (ASIC) as a registered managed investment scheme. CPF2L expects to issue a Product Disclosure Statement (PDS) for the Fund on or around 25 October 2021 (once issued, the PDS will be available at www.centuria.com.au). All investments in unlisted property funds carry risk. As the Fund invests in commercial property it carries the market and property risks associated with investing in property. As a geared investment, the Fund also carries associated financial and leverage risks. Risks can impact on distribution and capital returns over the term of the Fund. It is important that you read the PDS and understand the risks of investing. This information is general information only and does not take into account the objectives, financial situation or particular needs of any person. You should consider whether this information is appropriate for you and consult your financial or other professional advisor before investing. You should obtain and read a copy of the PDS relating to the Fund before making a decision to invest. Centuria and its associates will receive fees in relation to an investment in the Fund as disclosed in the PDS. Investment in the Fund is subject to risk including possible delays in payment or loss of income and principal invested. Centuria does not guarantee the performance of the Fund.

1 This fund is not yet registered with the Australian Securities and Investments Commission (ASIC).

2 By gross income

3 2.95% review in 2022 for Minister for Transport and Infrastructure, then increasing to 3.00% thereafter. Market review with ratchet and cap in 2028

4 Subject to assumptions and risks set out in the PDS (expected to be issued on or around 25 October 2021) and over the initial five-year term

5 Forecast returns are predictive in nature and are calculated in accordance with a number of underlying assumptions set out in the Product Disclosure Statement (expected to be issued on or around 25 October 2021). As such, returns may be affected by incorrect assumptions or by known or unknown risks and uncertainties and may differ materially from results ultimately achieved. Returns are not guaranteed.

6 Australia’s largest retail single-asset capital fundraise within the past 15 years as there are no further records dating beyond 15 years. Source: Core Property Fund Research & Ratings.

Centuria Capital Group Consisting of: Centuria Capital Limited ABN 22 095 454 336 Centuria Capital Fund ARSN 613 856 358

Level 41, Chifley Tower T: 02 8923 8923 E: sydney@centuria.com.au 2 Chifley Square, Sydney NSW 2000 F: 02 9460 2960 www.centuria.com.au