This article is from the Australian Property Journal archive
CENTURIA Property Funds has received over $130 million of investor interest for the available $62 million of equity, to help pay for its $104 million stake in the Australian Technology Park (ATP) in inner city Sydney.
The Centuria ATP fund has closed the retail equity raising closing after only six days. At the same time, ATP’s anchor tenant, NICTA signed a new 10-year lease, doubling the five-year lease term.
Centuria’s John McBain said the volume of interest in the ATP fund signals very strong investor affinity with Centuria’s long term property strategy.
“We identified the Australian Technology Park precinct as an important business and technology hub in 2013 when a Centuria fund acquired a 50% interest in the $220 million Channel Seven building.
“Centuria funds now wholly own the Channel Seven building and the group is excited to extend its investment in the precinct with the settling of this latest acquisition and the associated fund,” McBain said.
Unlisted property funds CEO Jason Huljich said both the fund subscription and leasing results bode well for a positive future for investors.
“In terms of the NICTA lease, this delivers long term income security over ~53% of the NICTA building net lettable area and dramatically reduces short term leasing risk. It also sets a strong market precedent for future lease negotiations within the precinct.
Under the new leasing arrangement, the NICTA building WALE (by income) increases from 1.2 years to 7.0 years and the Portfolio WALE (by income) from 2.1 years to 5.3 years. The rent increases from $478/sqm gross effective to $625 per sqm gross face.
Australian Property Journal
