GEELONG RECORD $115M PROPERTY SALE:
THE Transport Accident Commission’s waterfront headquarters has sold in Geelong’s biggest property deal.
The 5475sq m site at 60 Brougham St set a new record price for property in the region, selling for $115.25 million to a subsidiary of ASX-listed investment manager Centuria Capital Group.
The unconditional sale settled yesterday.
Centuria Property Funds Limited took the keys to the six-storey building from Impact Investment Group.
Impact set a then-record $95.8 million when it bought the asset in 2014.
The sale will earn the Melbourne-based funds manager about $20 million on its threeyear investment, representing a 16 per cent increase in the property’s value.
The property will be acquired by the Centuria Geelong Office Fund, a new single asset unlisted property fund which will be launched in February through which small investors can buy a piece of the building.
The A-grade building is 100 per cent occupied, with 94 per cent of its income underpinned by the long-term lease to the TAC, a AAA-rated State Government entity.
With more than 10 years of the TAC’s secure lease remain- ing, and a starting distribution of 7 per cent per annum to be paid monthly, Centuria Property Funds chief executive Jason Huljich expects strong demand from investors in the new Geelong fund.
Mr Huljich said investment had a five-year outlook.
“The building is centrally located in the thriving regional city of Geelong, which is benefiting from the relocation of a number of government agencies, including WorkSafe and the National Disability Insurance Agency,” Mr Huljich said.
“The acquisition complements our investment philosophy and offers reliable, longterm income for investors.”
Mr Huljich said the deal was one of its biggest in a regional area.
“We saw what’s happening in Geelong, with the government departments moving down there. We are actually quite excited about it,” he said.