Investec Australia Property Fund has announced its acquisition of an industrial facility in Brendale, Brisbane.
Representing an initial yield of 6.25%, the listed company acquired the facility for $15 624 000 on a fund-through basis with completion expected to occur in October 2020. The development is being undertaken by Felton Property group; an experienced industrial developer based in Queensland.
Situated 23 kilometres north of Brisbane’s CBD, it is in an established industrial precinct and it will be 100% occupied by 4WD Supacentre on a six-year lease once construction is completed in June 2021. The net passing rent is $105 per square meter with annual rental escalations of 2.75%.
Investec Australia Property Fund CEO, Graeme Katz says that the acquisition aligns with the fund’s strategy of investing in well-located, high quality assets that provide a sustainable income stream for investors. The property is a 9 300 square meter generic warehouse and the distribution facility will be constructed to a high specification with 10 852 square meters of hardstand and 95-on site care parks.
“Industrial property has proven to be relatively resilient despite the current health and economic challenges, and the acquisition increases the Fund’s industrial exposure to 31% by both income and value”, Katz added.
The acquisition is accretive for the Fund and will be funded by utilising the Fund’s existing debt facility.