Centuria Capital buys Sydney property for $454M

• Centuria acquired a 50% interest in Sydney office assets for $454 million.
• The acquisition will be funded through a new unlisted fund with a $268 million equity raise.
• The company stated that the strategy targets capital deployment within a repriced Australian office market.

Centuria Capital Group (ASX:CNI) agreed to buy a 50% stake in a Sydney office property for $454 million.

The purchase price represents a discount of approximately 60% below the estimated replacement cost of the assets.

“We are deploying capital into a repriced Australian office market, where dislocation has created a window to acquire an institutional-grade CBD asset significantly below replacement cost and at an attractive income yield,” said Centuria Capital Group Joint CEO Jason Huljich.

The transaction requires an equity raise of approximately $268 million from private and institutional investors to fund the purchase.

Following the announcement, the Centuria Capital Group share price was down at $1.93.

The company stated that its intention is to continue to scale up acquisition sizes to underpin asset growth.

This transaction follows two previous property acquisitions by the business that totalled $216 million and $168 million.