Investec property fund buys Canberra building

Investec Australia Property Fund has bought the Manning Clarke building in the ACT.

Investec Australia Property Fund has bought the Manning Clarke building in Canberra for $25.8 million, representing a yield of 7.84 per cent a year.

In a statement emailed to Data Room, the fund said the four-floor building -- which has a net lettable area of 5,403 square metres with 158 car spaces -- is leased to the Commonwealth governments’ Department of Human Services until February 2023. 

 “The addition of the Manning Clarke building to the Fund aligns well to our strategy of investing in high-quality office properties situated in key metropolitan areas,” the fund’s chief executive Graeme Katz said in a statement. “We continue to seek growth and diversification opportunities that enhance unit holder value and contribute to sustainable income growth.”

The fund’s gearing will rise to 27 per cent from 14 per cent after the acquisition, which was funded through debt.. Listed on the Johannesburg Stock Exchange last year, the fund has six industrial and four office properties.

(Reporting by brett.cole@businessspectator.com.au) 

(Editing by miranda.maxwell@businessspectator.com.au)

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