Listed Australian office property fund, Centuria Office REIT (ASX:COF), has agreed to sell its 25% interest in 465 Victoria Avenue, an office building located in Chatswood NSW for A$44.7m.
The sale price is A$2.8m above COF’s book value for its share of the property, which stood at A$41.9m as at 30 June 2020.
Explaining the rationale behind the sale, Grant Nichols, COF Fund Manager, said, “The sale of COF’s interest in 465 Victoria Avenue unwinds the Trust’s only minority interest in its portfolio at a price that reinforces COF’s net tangible assets. Proceeds from the sale will generate increased liquidity and improve COF’s robust balance sheet, which has ample headroom against the loan to value and interest coverage covenants.“
COF is Australia’s largest pure play office REIT and is included in the S&P/ASX300 Index. Prior to this sale, the portfolio held 23 assets valued at A$2.1bn, with the company boasting a 98.1% occupancy for FY20.
COF is itself part of Centuria Capital Group, which is an ASX-listed specialist investment manager with a total for the group of A$9.7bn of assets under management.
Settlement of the Chatswood sale is expected to occur in February 2021.