Private lending is fastest-growing arm of Centuria Bass group

New financial figures from Australasian real estate funds manager Centuria Capital Group have revealed that its lending arm is the fastest-growing division of the group.

According to its half year 2026 operating earnings per security guidance, the success of the property finance business – Centuria Bass Credit – has seen the group increase its ownership from 80 per cent to 100 per cent.

It had originally owned 80 per cent of the private lender, but increased this to 100 per cent on 25 February for $45.7 million (funded by $3 million cash and $42.7 million in Centuria Capital Group scrip).

In its update, released on Wednesday (25 February), the group announced that its private lending division had delivered a 36 per cent compound annual growth rate (CAGR), outperforming the wider market growth rate of 14 per cent.

Overall, the lender – which specialises in development finance – saw lending increase to take around 1 per cent share of the private credit market. It is eyeing further growth in the $224 billion private credit market and the $603 billion commercial real estate lending market.

The development finance lender has originated around 196 loans since inception, with around 92 per cent of its market being first mortgage exposure, with residential exposure totalling 88 per cent. On average, its loans carry a loan-to-value ratio (LVR) of 68 per cent.

More than 70 per cent of its loans are for finance in NSW (71 per cent), followed by Victoria (18 per cent).

Over a third of its loans are bridging finance.

According to the earnings upgrade, Centuria’s growth in the alternative real estate sector now accounts for 27 per cent of the group’s total real estate assets under management (AUM).

During HY26, Centuria’s agriculture vertical increased 85 per cent to $1.3 billion, and its property finance vertical increased 9 per cent to $2.5 billion.

During the period, Centuria also secured its Arrow Primary Infrastructure Fund management rights, which contributed an additional $444 million of AUM to the group.

Centuria now oversees the Arrow Fund, welcoming its management team and Arrow’s network of more than 460 private investors and family offices.

Speaking of the results, John McBain, Centuria joint CEO, said the earnings upgrade “reflects the strength of underlying Group profit drivers and momentum into the second half of the 2026 financial year”.

“Centuria’s platform is well-positioned to benefit from improving real estate market conditions, supported by rising transactional activity and a growing network of more than 15,500 private investors,” he said.

Centuria reported operating net profit after tax of $54.6 million, resulting in OEPS of 6.6cpsi (plus 6.5 per cent above FY25).

During the period, Centuria generated $0.4 billion of gross unlisted capital inflows across property funds management ($200 million) and property and development finance ($200 million).

Centuria’s private investor network recently expanded by almost 2,000 investors. Currently, more than 1,600 unlisted investors have investments in three or more Centuria funds.

An interim distribution of 5.2¢ per share was declared.

The group’s AUM expanded to a record $21.8 billion during HY26, up from $20.6 billion in HY25.

Centuria’s platform comprises $18.3 billion in property funds management (two-thirds unlisted funds and a third listed funds), $2.5 billion in real estate finance, and $1.0 billion in investment bonds.

Jason Huljich, Centuria joint CEO, said: “Private and institutional investor demand remains strong, particularly evidenced by our growth in alternative real estate sectors and through targeted offerings, more recently focused on industrial and large format retail.

“Centuria has a long and proud history of servicing private investors, many of whom are repeat clients or hold multiple investments across the platform. Our inorganic growth has been undertaken with a careful focus on integration of management teams, funds and investors as we build long-term partnerships.”

During the half year, Centuria acquired $0.5 billion in real estate assets, and a further $0.8 billion of assets have been secured or in due diligence since 31 December 2025.

The group said it would continue to “advance various long-term priorities while remaining nimble as markets evolve”.

[Related: Healthy appetite for commercial real estate lending amid cost pressures]