Investec Australia Property Fund buys New Zealand office in expansion drive
The fund’s management says the spread between prime-grade office yields in Wellington and key Australian CBD office markets is currently attractive
Investec Australia Property Fund (IAPF) has acquired a prime office for R1.2bn in Wellington as it expands into New Zealand for the first time and diversifies its asset base."IAPF is pleased to advise unit-holders that it has entered into a contract for sale with Kiwi Property Holdings Limited to acquire a prime grade office property known as The Majestic Centre … in Wellington, New Zealand.…."The seller is a wholly owned subsidiary of New Zealand Stock Exchange-listed Kiwi Property Group.The purchase price equates to an initial yield of 7.1%, pre transaction costs, with the potential to increase this yield to 7.3% on a fully leased basis. The purchase price plus all transaction costs will be funded via the fund’s existing syndicated debt facility with Westpac and ANZ, at an expected all-in funding cost of 4.1% per year."The property is the fund’s first investment into New Zealand and demonstrates management’s commitment to seeking out opportunities that represent relative value," C...
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