Insights

Centuria Capital (ASX:CNI) share price slides amid $72m acquisition update

The funds manager’s share price finished the day lower on acquisition news.
The post Centuria Capital (ASX:CNI) share price slides amid $72m acquisition update appeared first on The Motley Fool Australia. –

The Centuria Capital Group Ltd (ASX: CNI) share price edged lower on Monday and finished 2.1% in the red at $3.26.

Centuria shares dropped during the day despite the company announcing a key acquisition update.

Here are the key points from Centuria’s announcement.

What did Centuria Capital announce?

The company advised that its subsidiary Primewest secured a $71.2 million shopping centre in Geraldton, Western Australia.

Geraldton is a major regional gateway town in WA. The Northgate Geraldton Shopping Centre – Centuria’s asset from the purchase – is the dominant shopping centre in the area.

The city itself is supported by mining, broadacre agriculture, aquaculture fishing, tourism and logistics industries, which Centuria sees as positives for its new asset.

The announcement notes that anchor tenants Kmart and Coles contribute 49% of the gross rental income at the site with the former recently commencing a new 10-year lease.

Including other tenants at the centre, the site “provides a 4.7 year weighted average lease expiry (WALE) and is 96.3% occupied”.

Centuria, via Primewest, secured the site for “a new single-asset, unlisted closed-ended wholesale fund”.

The Northgate Geraldton Trust (NGT) has an initial 5-year term and will be open to wholesale investors from 13 October.

It forecasts a 7.25% distribution within the first 2 years and has a target equity raise of $41.8 million.

What did management say?

Speaking on the announcement, Centuria joint CEO Jason Huljich said:

The acquisition illustrates how Centuria’s larger balance sheet can support the team’s expansion across large format and neighbourhood retail markets by securing quality, well performing assets. It adds to the Group’s strong retail real estate portfolio, totalling more than $2.6 billion.

Touching on the development area itself, Huljich added:

This is a rare opportunity to secure a retail asset that’s strategically located within WA’s fourth most populated area. It benefits from strong tenant covenants with 80% of the property’s gross income derived from ASX-listed, national and multinational tenants.

Centuria Capital share price snapshot

The Centuria Capital share price has slumped 6% into the red this past month but is still up 24% this year to date.

It’s also gained 47% over the past 12 months, more than double that of the S&P/ASX 200 Index (ASX: XJO)’s approximate 20% return in this time.

The post Centuria Capital (ASX:CNI) share price slides amid $72m acquisition update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Centuria Capital Group right now?

Before you consider Centuria Capital Group, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Centuria Capital Group wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

These ASX dividend shares keep giving investors a payrise

Why did ASX tech shares just have such a good FY22 first quarter?

QBE (ASX:QBE) share price slips following Federal Court judgement
Here are the top 10 ASX shares today

Wesfarmers (ASX:WES) share price struggles amid latest API speculations

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!