Centuria Capital Group (ASX: CNI) has just paid $89 million to acquire an office building in Brisbane’s CBD. Let’s take a look at the details behind the deal.
Centuria Capital Group is a specialist investment manager with a 35 year track-record of delivering a range of products and services to investors, advisers and securityholders. The business is centered around property funds management and investment bonds.
In an announcement to the market this morning, it was revealed that Centuria has entered into an agreement to acquire a large office building in the Brisbane CBD for a total of $89 million.
This adds to a string of acquisitions already made in the first half of the financial year, bringing year to date property acquisitions to $675 million. Total assets under management continues to expand, now reaching $6.6 billion.
The acquisition will generate a new fund for Centuria’s unlisted division, with an expected launch date sometime in the next month. The fund is expected to deliver investors a distribution yield of 6.25%, growing to 6.5% by FY21.
The asset has a 5.1 year weighted average lease expiry (WALE) and is 89% occupied. Many of the tennants are ASX-listed or large multinational companies.
Commenting on the acquisition, joint CEO Jason Huljich said; “We are pleased to be offering another high quality fund for our investor base. 348 Edward Street is a well located, attractive asset close to surrounding amenity and transport infrastructure”.
Huljich went on to talk about a number of recent acquisitions made across Centuria’s suite of funds, saying that, “these acquisitions are an integral part of our group strategy to accelerate AUM growth and we expect to continue this momentum by executing on further attractive opportunities across our real estate platform.”
Centuria shares currently trade with a growing 4.2% dividend yield, which may prove tempting for income hungry investors looking to diversify away from the big banks.
For other proven, dividend-paying ASX shares, grab a copy of the free report below.
"How To Invest" - Free Educational Report
Our founder has put his finishing touches on a free investing course for Rask Media readers. It's entirely free and takes you through our version of Warren Buffett's four sharemarket investing principles, including the exact steps to find, research, analyse and provide valuations of real companies.
The course is entirely free and emailed to you over four days. Hundreds of Aussies have already subscribed to the course and the feedback has been overwhelmingly positive. Click here to take the free course.
At the time of publishing, Luke has no financial interest in any companies mentioned.