Centuria’s co-CEO, John McBain, said the Visy Glass facility will form a new unlisted New Zealand fund, guaranteed by Centuria. It will be the largest unlisted fund Centuria has launched to date, and it marks a turnaround for Augusta Capital, making New Zealand operations expand ahead of schedule.
With more than $ 700 million in guaranteed healthcare and industrial assets since the start of the current fiscal year, another $ 300 million under due diligence, and the additional acquisition of Visy Glass, the assets of Centuria under management are set to expand to $ 10 billion.
The additional earnings associated with the rise in assets under management prompted Centuria to upgrade its guidance for FY 21 while increasing its Operating Profit Per Safety (EPS) guidance to 11.5 – 12.5 ¢ per safety, an increase of 9.1% over the previous directive and Distribution Per Safety (DPS) increased guidance to 9 Per safety, an increase of 5.9 percent over the previous route.
“The acquisition of Visy Glass in New Zealand follows the recent acquisition of Telstra Data Center in Victoria, worth $ 416.7 million, and Centuria is delighted to partner with both groups on these initiatives,” said Mr. McBain.
“Centuria has updated both the EPS Operating Directive and the DPS Directive after strong real estate fund management activity so far in FY 21 with a significant proportion of this profit generated by our New Zealand business unit to support our continued confidence in this acquisition.”
The deal comes on the heels of other sale and leaseback deals, such as the purchase of Charter Hall of David Jones’ flagship store in Elizabeth Street, Sydney for $ 450 million. David Jones store has a long lease on the asset.
Jason Holgich, CEO of Centuria Joint, added that the industrial sectors in both Australia and New Zealand have enjoyed exceptional growth over the past three years and “we continue to benefit from this tailwind.”
“Together with the healthcare real estate transactions, Centuria is on the right track to expand assets under management to $ 10 billion, an increase of 14 per cent since the end of fiscal year 2020,” he said.
Centoria Stock Exchange was $ 2.29 before trading was halted today.