Centuria Capital Group and MA Financial Group have acquired a 24-level office building in Adelaide’s CBD for $166.6 million in a 50:50 joint venture between the two companies.
Located at 25 Greenfell Street, “The Black Stump” has a net lettable area of 25,000 square metres and circa 90 per cent occupancy with a four-year weighted average lease expiry.
Approximately 72 per cent of the property’s gross income is underpinned by government and blue-chip multinational professional corporations, with major tenants including SA Health, the Department of Primary Industries and Regions, the Minister for Energy and Mining and the Reserve Bank of Australia.
“This acquisition represents an opportunity to capitalise on the strong tenant demand for high-quality A-Grade office space within Adelaide’s prime CBD market,” said Jason Huljich, joint CEO of Centuria.
“Adelaide’s office leasing enquiry levels are trending strongly, above pre-COVID levels, with a 42 per cent increase in the 12 months to Q2 2021.”
The company said its stake will be part of a new unlisted single-asset close-ended property fund called the Centuria 25 Greenfell Street Fund which is expected to launch early next year.
Centuria and MA Financial will jointly manage the building and settlement is expected to take place in December.
“We are very pleased to work in partnership with Centuria Capital to acquire this iconic asset, which is right in the heart of Adelaide’s CBD, said Julian Biggins, joint CEO of MA Financial.
“We believe that there is a significant opportunity to enhance the building’s value and profile through active management, utilising the combined expertise of both firms.”
MA Financial’s stake will be split between its two diversified real estate funds, the MA SIV Property Fund and the MA Diversified Property Fund.
The company upgraded its earnings guidance for FY21 last week due to “continued momentum” across the business.
