Australia's Centuria Office REIT to divest Queensland property to repay debt (updated)

Centuria Office REIT

25/07/2023 01:06

(Adds context about commercial real estate sector in paragraph
2 and details about divestment in paragraphs 3 and 4)
       July 25 (Reuters) - Australian real estate investment
trust Centuria Office REIT  COF.AX  said on Tuesday it would
divest its 35 Robina Town Centre Drive property in Queensland
for A$40 million ($26.94 mln) to avert a near-term leasing risk.
    Many commercial real estate firms have recently divested
properties as they face increased pressure due to a slowing
economy amid rising interest rates.
    Centuria Office REIT will sell the property at a discount of
5% to the book value of A$42.0 million as at Dec. 31, 2022 and
use the proceeds to repay debt, the company said.
    Earlier this month, it flagged that external valuations on
about 13 of its 23 investment properties as at the end of June
reflected a like-for-like decline of about A$102 million.
    In June, Dexus  DXS.AX  sold two properties, including one
of its premium office buildings in Sydney's central business
district for A$393.1 million. 

 ($1 = 1.4846 Australian dollars)

 (Reporting by John Biju in Bengaluru; Editing by Subhranshu
Sahu)
 ((John.Biju@thomsonreuters.com;))