Fund manager Sentinel on the march as maverick strategy reaps $14 million reward

Sentinel Property Group’s counter-cyclic investment strategy is paying dividends with a big payday from its divestment of Citilink Business Centre.

Citilink Business Centre at Bowen Hills has changed hands in a $76 million deal

A CAMPUS-style business centre opposite Queensland’s largest hospital has sold for $14 million more than when it last changed hands only a few years ago.

In a $76 million deal, Citilink Business Centre has been divested by Brisbane-based fund manager Sentinel Property Group.

Its sale comes amid strengthening demand from institutional investors for defensive, income-producing assets across the city.

Sydney-based superannuation fund Prime Super is understood to have finally settled its acquisition of the property at 153 Campbell St, Bowen Hills, over the past week in a deal brokered by CBRE.

On a highly exposed 12,690sq m corner site opposite the Royal Brisbane and Women’s Hospital, it comprises a total net lettable area of 15,691sq m and more than 285 car parks.

The Citilink sale follows Sentinel completing the largest acquisition in its history with the purchase of Makerston House, a fully leased Brisbane CBD office building for $103 million on a net passing yield of 7.85 per cent.

Sentinel Property Group managing director Warren Ebert outside Makerston House in Brisbane. Picture: Richard Waugh

It has also recently expanded its footprint in the Mackay region with the purchase of a trio of industrial properties for about $2.4 million, bringing its portfolio in the area to almost $100 million.

Sentinel purchased Citilink Business Centre — a property with redevelopment upside and major tenants including the State Government and instruments maker Siemens — in a counter-cyclic play in 2014 from Centuria Funds Management for $62 million.

Sentinel managing director Warren Ebert said the group over its 10-year history had an enviable track record of buying and selling at the right time.

“Sentinel has always proudly run against the herd when it comes to our investment decisions,” he said.

“Where others see risk, we see opportunity. We buy where others fear to go and we have a track record of adding value to those properties and selling them to deliver a good return for our investors.”

Citilink Business Centre sits on a corner site exposed to more than 25,000 cars per day on Bowen Bridge Rd and also features a functions area, gym, tennis court and pool as well as being adjacent to major public transport infrastructure.