Centuria Capital Sells Strathpine Office for $55.5M, Delivering Strong Returns

About Centuria Capital Group Limited

Centuria Capital Group (ASX: CNI) is a leading Australian real estate investment manager with a diversified portfolio spanning commercial, industrial, healthcare, and agricultural properties. With a strong track record of strategic acquisitions, high-yield investment opportunities, and active asset management.

Centuria Capital Group has successfully sold an A-grade office building in Strathpine, Queensland, for $55.5 million. The buyer, Sandran Property Group, a Sydney-based investment firm, has acquired the asset as part of its growing commercial portfolio. The sale reflects Centuria’s strategic approach to optimising its property investments while delivering strong returns to investors.

Property Features and Long-Term Lease

The property, known as SRG House, was developed as the corporate headquarters for the ASX-listed Super Retail Group (SRG). Located on a 2.85-hectare site, the building offers 7,272 square meters of premium office space, supported by 611 on-site car parks.

A key attraction for investors is the 10-year lease commitment from SRG, ensuring long-term rental income. Additionally, the property includes 6,184 square meters of undeveloped land, presenting potential for future expansion. Its location within the Moreton Bay region further enhances its value, with strong transport links and access to local infrastructure.

Strong Investment Returns

The sale generated a 14% initial rate of return for investors in Centuria’s single-asset wholesale fund. Jesse Curtis, Centuria’s Head of Funds Management, highlighted that the fund was launched in 2017, and over the past eight years, it has consistently delivered competitive returns. Curtis also noted that the office sector is showing signs of recovery, with increasing demand from tenants. Factors driving this trend include, companies returning to office-based work, leading to renewed interest in high-quality office spaces. Australia’s growing white-collar workforce, supporting demand for corporate office environments. Lastly, limited new office developments, creating supply constraints that benefit well-located existing assets.

Strong Market Interest and Competitive Sale Process

The property attracted more than 70 inquiries and received seven formal offers, reflecting strong demand for well-leased office investments. The bidding pool included local, interstate, and international investors, demonstrating the ongoing appeal of Queensland’s commercial property sector. Matt Barker of Knight Frank, who handled the sale, described SRG House as one of the Moreton Bay region’s premier office assets, citing its stable rental income and future growth potential.

Centuria’s Broader Investment Strategy

This sale aligns with Centuria’s ongoing strategy of repositioning its property portfolio through selective acquisitions and divestments. The company has been actively investing in different asset classes, including office, industrial, and alternative sectors like healthcare and agriculture.

Recent Acquisitions include, Centuria’s recently purchased a $224 million office building in Footscray, Victoria, for a new unlisted single-asset fund, reinforcing its confidence in the office market. Further, the company also acquired a $22 million industrial facility in South Australia, leased to blue-chip tenants, providing stable long-term income.

Positive Outlook for the Office Market

The successful sale of SRG House signals renewed confidence in the Australian office market. With companies bringing employees back to the workplace and a growing labour force driving demand, well-located office assets remain attractive investments.

Centuria’s ability to adapt to market trends while maintaining a disciplined investment approach ensures ongoing value creation for its stakeholders. As the company continues to refine its portfolio, investors can expect further opportunities in high-quality commercial properties across Australia.