Investec Australia Property Fund acquires Canberra office building

Posted On Tuesday, 12 March 2019 21:09 Published by
Rate this item
(0 votes)

Investec Australia Property Fund (“IAPF” or the “Fund”) today announced the acquisition of a low rise office building in Symonston, Canberra for AUD 29,750,000[1] which represents an initial yield of 6.93%.

 Graeme_Katz-

The property has a total gross lettable area of 4,720m² which includes a data centre component of 680m² as well as 113 parking bays.

The property is situated at 24 Wormald Street, Symonston, 7 kilometres south east of the Canberra CBD and 3 kilometres south of the Canberra Airport.

The property is 100% occupied by the Commonwealth of Australia with 8.5 years remaining under the lease. The passing office rent is AUD 453 with annual rental escalations of 3.5%.

The acquisition is accretive for the Fund and will be funded by utilising the Fund’s existing debt facility. Post the acquisition the Fund will be geared to 38.9% with a weighted average cost of debt of 3.86% and hedged to 77% for an average of 5.3 years.

Commenting on the acquisition, IAPF CEO Graeme Katz said:

“The acquisition aligns with the Fund’s strategy of investing in well-located, high quality assets that provide a sustainable income stream for investors, in this case backed by the Commonwealth of Australia.”

“The property is purpose built for the Commonwealth of Australia to a very high specification. The area is home to a number of businesses involved in the research, development, manufacture, processing, assembly and marketing of advanced technology and scientific products and the property is well located in close proximity to major arterial roads including the Monaro Highway, Canberra Avenue and Hindmarsh Drive. The acquisition increases our exposure to the Canberra market from 7% of revenue to 10%.”

IAPF, listed on the Johannesburg Stock Exchange, provides South African investors with direct access to the Australian commercial property market.

This purchase price is consistent with the independent valuation obtained in relation to the property on 8 February 2019.

Last modified on Wednesday, 13 March 2019 12:16

Most Popular

Exemplar REITail Acquires Katale Square Shopping Centre

Sep 23, 2019
 JASON MCCORMICK
Real estate investment trust, Exemplar REITail, has acquired Katale Square shopping…

Mall of Africa Celebrates Launch of New Generation Pick n Pay Store

Sep 23, 2019
 MOA PNP  1
Today Mall of Africa welcomed one of South Africa's biggest grocery retailers to the…

Grit Real Estate financial results for the year-ended 30 June 2019

Sep 30, 2019
 BRONWNY CORBETT
London Stock Exchange listed Grit, the only listed Africa-focused income distribution…

4AX listed Heartwood Properties reveals positive financial results

Sep 23, 2019
 JOHN WHALL
Commercial property development company, Heartwood Properties , has revealed a 30%…

Reserve Bank keeps repo rate unchanged

Sep 23, 2019
 LESETJA KGANYAGO
 South African Reserve Bank Governor Lesetja Kganyago on Thursday said this is in line…

Please publish modules in offcanvas position.