Centuria’s Q4 Report Shows A$391M Loan Balance and No Compliance Breaches
Centuria Capital No. 2 Fund confirms full compliance with note terms and stable loan positions in its Q4 FY25 report, reassuring investors amid a steady operational quarter.
- No breaches of note terms or regulatory requirements during Q4 FY25
- Unsecured loans to related entities remain substantial but stable
- Security interests deemed sufficient to cover all liabilities
- No changes in guarantors or business nature reported
- Continued strategic investments in listed and unlisted property funds
Quarterly Compliance and Stability
Centuria Funds Management Limited (CFML), acting as trustee for the Centuria Capital No. 2 Fund (C2F), has released its quarterly report for the period ending 30 June 2025. The report confirms that CFML and its guarantors have fully complied with the terms of the secured redeemable notes traded under ASX code "C2FHA". No events occurred that would trigger immediate repayment or enforcement actions, signaling operational stability and adherence to regulatory frameworks.
Loan Advances and Related Party Transactions
The report details significant unsecured loans extended to related entities, including a repayment of A$17.5 million during the quarter, leaving an aggregate balance of approximately A$391 million with Centuria Finance Pty Limited, a wholly owned subsidiary of Centuria Capital Limited. Additionally, the fund holds a loan treated as an investment in CHPF Sub Trust No. 4, a subsidiary of Centuria Healthcare Property Fund, with a balance of A$28.6 million. These related party transactions underscore the interconnected nature of Centuria’s investment and financing activities within its group structure.
Security Interests and Risk Mitigation
CFML reassures note holders that the security interests, consisting of first-ranking general security deeds over assets of CFML and related trusts, remain sufficient to cover all liabilities. The assessment indicates that the value of secured property is unlikely to be affected by the financial performance of related parties, providing a layer of protection for investors. No material changes in guarantors or the nature of the business were reported, further supporting the fund’s risk profile.
Strategic Positioning within Centuria Group
C2F continues to hold strategic equity investments in a range of listed and unlisted property funds managed by Centuria Capital Group, including the Centuria Industrial REIT and Centuria Office REIT. With Centuria Capital Group managing over A$20 billion in assets, C2F’s role as a vehicle for targeted property investments remains integral to the broader group’s strategy. The quarterly report reflects a steady operational quarter without surprises, maintaining investor confidence in the fund’s governance and financial health.
Bottom Line?
Centuria Capital No. 2 Fund’s steady compliance and stable loan exposures set a solid foundation as investors await future strategic moves.
Questions in the middle?
- How will Centuria manage related party loan exposures amid evolving market conditions?
- What impact might changes in property market valuations have on the security interests backing the notes?
- Are there plans to adjust the fund’s investment mix or capital structure in upcoming quarters?
