Why Centennial’s Latest Fund Oversubscribed in 10 Days
Q&A with Lyle Hammerschlag, Executive Director of Private Wealth & COO of Centennial Property Group.
Introduction
I was first introduced to Centennial Property Group founders Jon Woolfe and Lyle Hammerschlag via the late property legend Dr Frank Woolfe, founder and CEO of listed Abacus Group.
In around 2013, Frank and I were having lunch and he was telling me about his son who had just started a property funds management company. The focus of Centennial was to operate in the price sector that was below the institutional groups, to take advantage of the less competitive buying price bracket.
We first co-invested with Centennial Group in around 2014 with the acquisition of a commercial office tower in Arthur Street in North Sydney, the property was purchased for 36.7 million in 2014 and sold in 2017 for c. $70 million after a 29-month holding period, providing an investment return of 48% IRR.
You can read the detailed deal analysis here via the MP Report Premium.
Since that date, Centennial Group has grown to more than $2bn in transactions and more than $1.4bn in equity raised with an average investment return of 22%, and an executive team of outstanding pedigree.
For me, the value that I see in speaking with and co-investing with Centennial is their sector agnostic approach. They are multi-disciplinary in that they operate across Industrial Warehouse, Commercial Office, Retail, Social Infrastructure and Debt markets. What this means is a really thorough approach to investment value across most sectors of the Investment-grade property markets.
Centennial Property Group’s recent single-asset closed-end industrial fund Centennial Warrego Fund oversubscribed in 10 days in March 2024, paying a forecast 8-9% distribution and overall target return of 15-17% (IRR).
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