Acquisition of Leasehold of 8 Central Avenue, Australian Technology Park
We previously acted for Centuria on the acquisition of a 50% leasehold interest in 8 Central Avenue, Australian Technology Park, in December 2013. In 2015 our client negotiated to acquire the remaining 50% interest in the property via the newly formed Centuria 8 Central Avenue Fund No.2, a single-asset syndicate closed-end fund. The aim was to provide an attractive return and security of income to investors.
We worked directly with our client's acquisitions team to manage the acquisition and close the deal. Our work involved:
- conducting an extensive due diligence of the title and leasehold arrangements;
- reviewing and advising on all sub-leases and licence agreements to sub-tenants;
- drafting and negotiating the terms of a Put & Call Option Agreement and negotiating the terms of the Contract for Sale;
- attending to exchange and undertaking all usual post exchange searches and enquiries;
- satisfying requirements of investors and financiers; and
- attending to settlement arrangements including preparation of deeds of covenant with sub-tenants, transfer of sub-lease securities and assignment of service contracts.
The acquisition of 8 Central Avenue by way of two separate leasehold interests and two separate funds represented a unique and interesting structure. Valued at over $190 million in total it was a significant acquisition in the Centuria portfolio of properties. The title structure of the property is unique in that the freehold of the site is held by UrbanGrowth NSW and the property has been leased via multiple long term leases to Australian Technology Park. Centuria now holds a long term leasehold interest sitting under the head lease structure. The size of the acquisition and the volume of documentation involved required Makinson d'Apice to mobilise a team in the property group to ensure all legal due diligence could be completed within the project timeline.