Century Funds pays $7.5m for North Sydney offices

Author: Mary Byrne
Date: 24/01/2002
Publication: Australian Financial Review
Section: Property

Property syndicator Century Funds Management has made its first move into the North Sydney market, with the $7.75 million purchase of an office building from Seafirst Nominees.

The seven-level property at 122 Walker Street includes 1,851 square metres of office space plus basement car parking.

The deal, negotiated by Chesterton International director Mr Bevan Kenny, will give Century an initial yield of 8.5 per cent.

The building's tenants include UTAG Travel Group, Reply 2 and Cedar Group. One floor was vacant at the time of purchase but Century director, Mr Jason Hujlich, said Century was in negotiations with a prospective tenant.

Mr Hujlich said the building had the potential for a strata conversion, which could be one of Century's exit strategies.

The acquisition is Century's third investment on Sydney's north shore in seven months.

Other recent purchases include 80 Waterloo Road in North Ryde for $7.065 million and the old Mojo building at 339 Military Road in Cremorne for $13.75 million.

``We've got a firm view that the lower north shore office market has got plenty of opportunity for capital growth," Mr Hujlich said. ``It's a favourite investment location, there's no question about that. But we are looking at other Sydney markets and we're also having a look at Melbourne."

Mr Hujlich said Century was looking to make more office purchases, as well as adding a bulky goods centre and some industrial property to its portfolio.

Century's latest purchase puts its total funds under management at $75 million. It plans to double this during 2002.

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