Centuria has made its first foray into the Perth office market with the acquisition of two commercial assets.
The Centuria Metropolitan REIT has completed the acquisition of two Perth office buildings, the Hatch Building and 42-46 Colin Street, for $91.8 million.
Centuria Metropolitan trust manager Nicholas Blake said the acquisitions complement the REIT’s current portfolio and management strategy.
“The two Perth assets are 100 per cent leased, with the major occupiers being WA Police, Insurance Australia Group Ltd and consulting firm Hatch,” Mr Blake said.
“This diverse range of high-quality tenants, from government-owned and listed companies to international firms, means shareholders can feel confident in securing attractive and stable yield.”
The acquisitions have been partially funded by a $90 million equity raising, and will bring the fund’s market value to more than $520 million.
Mr Blake said the Centuria Metropolitan REIT approach had been informed by the fact that the Perth metro market was “beginning to show excellent fundamentals” and “proving attractive to risk-averse investors”.
“[Our] west-coast expansion, in line with our asset-driven and active management approach, will see shareholders benefit from the significant east/west pricing disconnect in the office market,” he said.
The two acquisitions come off the back of Centuria’s $58 million purchase of Target’s Melbourne-based headquarters in late July.
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