Centuria COF’s Qld office sold at discount

Oksana Patron

26 July 2023

Centuria Office REIT (COF) has announced a divestment of 35 Robina Town Centre Drive in Gold Coast for $40 million, a price that reflected around 5% discount to the 31 December 2022 book value of $42 million.

In the announcement made to the Australian Securities Exchange (ASX), Centuria’s Office REIT said that the discount was consistent with its completed portfolio valuation as at 30 June 2023, which saw a like-for-like portfolio decrease of around 4.4%.

COF first acquired the Robina asset, described as a commercial office tower with “a NLA of 8,814 sqm, 249 sqm of impressive balcony space over six levels of office accommodation and basement parking areas, in 2015, with the property delivering an IRR of around 7% during the period of ownership, the fund said.

The divestment of the non-core property was also consistent with COF’s strategic focus “on improving portfolio assets by age and quality”.

Centuria said in the announcement that sale proceeds would be used to repay debt.

The settlement of the transaction is expected to occur in September.

“This is COF’s second divestment since June 2023 at or near 31 December 2022 book values, further demonstrating solid investment demand from potential buyers for assets at an accessible price point,” Grant Nichols, COF fund manager and Centuria Head of Office, said.

“COF continues to be well positioned with a diversified portfolio of modern, quality and affordable accommodation solutions.”