Centuria Capital (ASX:CNI)
secured a $63 million office building in Nile Street Port Adelaide, for its unlisted real estate fund, Centuria government income property fund (CGIPF).
The property investment manager noted that the Nile street building is situated near Port Adelaide's rejuvenation project, a 20-year initiative that is anticipated to attract up to 8,000 additional residents and 1,500 construction jobs.
Centuria CEO Jason Huljich said, “Nile Street provides a compelling investment proposition, providing strong tenant covenants and resilient revenue streams...its exemplary sustainable features, and being a young property, prevents capital expenditure leakage, providing value for investors.”
The fund is expected to open on 25 Oct this year, while CGIPF will have an initial five-year term and targeted equity raise of $35 million.
Mr Huljich continued, “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.”
Shares in Centuria Capital Group (ASX:CNI)
are trading 1.1 per cent lower at $3.47.