Investec Australia Property Fund purchases prime Brisbane commercial office building for R203m

Posted On Thursday, 27 February 2014 10:03 Published by
Rate this item
(0 votes)

Investec Australia Property Fund announces the purchase of an A-grade commercial office building in the prized Garden City Office Park, located 15km south of Brisbane's CBD in one of Queensland's fastest growing precincts.

Graeme Katz

This prime property was purchased for R203m (AUD 20.95m) at an attractive yield of 8.25%.

"This quality acquisition was made possible thanks to the strong relationships we have in the industry. Relationship-based banking underpins the Fund's growth strategy and we are pleased to see its success so early on," said Graeme Katz, the Fund's CEO.

The building was purchased from one of Brisbane's most highly regarded office developers who has a longstanding association with Investec and its management.

The property has a high parking ratio and the net lettable area of 3,568 square metres is 100% occupied by quality tenants, including Healthscope Australia's largest healthcare provider, on medium to long term leases with contracted rental growth of approximately 3%.

The commercial office building will be added to the Investec Australia Property Fund portfolio, marking the first purchase since it listed on the Johannesburg Stock Exchange (JSE) late last year.

IAPF provides an opportunity for South African investors to access the Australian property market.

On listing, IAPF had a mix of six high quality logistics properties and two A-grade office buildings, located in established commercial precincts within major metropolitan areas such as Melbourne, Canberra, Brisbane and Adelaide.

The Eight Mile Plains property provides further geographic diversification across the portfolio.

"The acquisition is consistent with the Fund's strategy of investing in high quality office assets that are well located in major metropolitan areas," said Graeme Katz.

"We are actively seeking opportunities to grow and diversify IAPF's asset base, enhance unitholder value and contribute to sustainable income growth.

The acquisition of the property, to be funded by debt at an all-in cost of approximately 5%, leaves significant headroom to enable us to react quickly when other quality opportunities become available," added Katz.

Last modified on Friday, 18 April 2014 08:49

Most Popular

Investec Property Fund launches first REIT sustainability-linked ESG bond in Africa

Apr 22, 2021
Investec Property Fund (‘IPF’ or ‘the Fund’) today became the first South African real…

Rethinking office space in post pandemic SA

Apr 20, 2021
Since the beginning of the pandemic, one of the biggest questions in real estate has been…

4 simple rules to getting a good credit score

Apr 21, 2021
Make buying your dream home an informed purchase by knowing your credit score.

EPP’s new app takes tenant relations to the next level

Apr 22, 2021
Johannesburg Stock Exchange listed EPP, Poland’s biggest retail landlord, continues to…

Western Cape ripe with affordable housing potential

Apr 20, 2021
The TUHF Western Cape regional team believes that even though COVID has had an impact on…

Please publish modules in offcanvas position.