Centuria Government Income Property Fund No.2

Metropolitan office fund with long term government tenancy targeting 5.25%+ p.a. distributions.

centuria-government-income-property-fund-no.2-image img

Core Property has reviewed the Centuria Government Income Property Fund No.2, the latest unlisted property fund by Centuria. The Fund follows on from the successful launch of the first Government Income Property Fund by Centuria in July 2021.

The Fund provides an opportunity to invest in an office property located at 25 Nile St, Port Adelaide South Australia. The Property was purpose built in 2018 and is fully leased to the South Australian Government, offering a relatively high level of income stability. The Property also provides a long weighted average lease expiry (WALE) of 11.1 years, with contracted average rent increases of 3.0% p.a., as well as 6 star NABERs ratings for energy and water.

The Manager is seeking to raise $34.7M through the issue of 34.7M units at $1.00 per unit. The Offer has a close date of 19 November 2021.

The Manager is targeting distributions of 5.25% p.a. (annualised) in FY22 and 5.35% p.a. in FY23.

Core Property has rated the Fund as RECOMMENDED