Centuria's (ASX: CNI) property fund has acquired an Adelaide CBD office building for $127 million.
The property, located on 80 Flinders Street, is expected to generate capital for the investment manager's unlisted property fund.
The fund is expected to launch in August 2019, delivering FY20 and FY21 distribution yields of 6.50 per cent and 6.60 per cent.
The Flinders street property was constructed in 2006 and is 100 per cent occupied with 95 per cent of gross income underpinned by multinational and ASX listed companies.
Joint CEO of Centuria Jason Huljich says Adelaide is a key market for the company moving forward.
"The group's latest acquisition represents another example of our team's ability to selectively identify quality real estate opportunities in a highly competitive environment," says Huljich.
"As a market, Adelaide is continuing to transform through a strong pipeline of approximately $130 billion of infrastructure and defence projects, as well as offering attractive fundamentals relative to other core CBD markets."
"Centuria's property team expects to build on FY19 momentum with a greater range of attractive real estate acquisitions in FY20 across its stable of listed, unlisted and healthcare funds."
Business News Australia