Centuria Capital has exchanged contracts to acquire a 50 percent interest in a pair of Sydney CBD office towers at 680 George Street and 50 Goulburn Street for $454 million, representing a purchase price approximately 60 percent below the estimated replacement cost of the assets. The acquisition marks a significant deployment of capital into a repriced Australian office market and establishes what will become Centuria’s largest single-asset closed-end unlisted fund.
The newly created Centuria Sydney CBD Prime Office Fund provides everyday Australian investors with direct exposure to a high-quality institutional-grade CBD office asset through a minimum investment of $100,000. Centuria has raised approximately $268 million from its investor network, with notable support from Japanese-based institutional investors. The Fund offers an initial forecast distribution yield of 7.5 percent per annum, paid monthly, with a five-year initial term and settlement scheduled for the first quarter of financial year 2027. This structure allows retail investors to participate in institutional-quality commercial real estate typically accessible only to larger capital pools.
The underlying assets comprise a 67,700 square meter, 45-level prime-grade office tower with characteristics that underscore institutional quality. The buildings maintain a 93.4 percent occupancy rate and a weighted average lease expiry of 4.0 years, supported by a diversified tenant mix dominated by government agencies, national corporations and multinational occupiers. The properties carry strong sustainability credentials, including a 5-star NABERS Energy rating, 6-star NABERS Waste rating and 4-star Green Star certification, positioning them well for the long-term transition to sustainable commercial property standards.
Location amplifies the assets’ strategic appeal. The towers occupy the World Square precinct within Sydney CBD’s Midtown district, an area benefiting from significant recent infrastructure investment. The opening of the Gadigal Sydney Metro Station in 2024 has catalysed revitalisation of the precinct, with the station now serving approximately 15,700 passengers daily. This enhanced connectivity, combined with existing retail and transport amenities, strengthens the buildings’ long-term occupancy and rental growth prospects.
Centuria’s move reflects a deliberate strategy to deploy capital into institutional-grade office at a time when new supply remains structurally constrained and existing prime stock continues to be withdrawn or repositioned from the market. The company indicates this as part of an escalating acquisition program, following prior purchases of $216 million and $168 million respectively, with stated intentions to continue scaling acquisition size and underpin funds under management growth. Investors should monitor settlement progress and the Fund’s initial distribution performance once operations commence. This announcement has been flagged as price sensitive and is material under ASX Listing Rules.
View the full ASX announcement (PDF)
About Centuria Capital Limited (ASX: CNI)
Centuria Capital Limited is an Australian investment manager specializing in property and real estate across multiple asset classes. The company manages listed real estate investment trusts, unlisted property funds, and real estate credit funds spanning office, industrial, retail, healthcare, and agricultural properties. It provides investment products and financial services to institutional and individual investors seeking exposure to property markets.
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