News: COF UPDATE 1-Australia's Centuria Office REIT to divest Queensland property to repay debt

(Adds context about commercial real estate sector in paragraph 2 and details about divestment in paragraphs 3 and 4)

July 25 (Reuters) - Australian real estate investment trust Centuria Office REIT (COF) said on Tuesday it would divest its 35 Robina Town Centre Drive property in Queensland for A$40 million ($26.94 mln) to avert a near-term leasing risk.

Many commercial real estate firms have recently divested properties as they face increased pressure due to a slowing economy amid rising interest rates.

Centuria Office REIT will sell the property at a discount of 5% to the book value of A$42.0 million as at Dec. 31, 2022 and use the proceeds to repay debt, the company said.

Earlier this month, it flagged that external valuations on about 13 of its 23 investment properties as at the end of June reflected a like-for-like decline of about A$102 million.

In June, Dexus (DXS) sold two properties, including one of its premium office buildings in Sydney's central business district for A$393.1 million.

($1 = 1.4846 Australian dollars)