Investec Australia Property Fund acquires Canberra office building

IAPF CEO, Graeme Katz.
IAPF CEO, Graeme Katz.

Investec Australia Property Fund has announced the acquisition of a low-rise office building in Symonston, Canberra for AUD 29 750 000, representing an initial yield of 6.93%.

The property’s total gross lettable area spans 4 720 square meters of which includes a data centre component of 680 square meters including 113 parking bays.

Situated at 24 Wormald Street, seven kilometres south east of Canberra’s CBD and three kilometres south of the airport.

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

The acquisition will be funded by utilising the 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.

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” commented IAPF CEO, Graeme Katz.

 “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%.”