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.