A South African listed property fund has sought to expand into the Australian market, purchasing its first property in Victoria.
According to Money Management the
Investec Australia Property Fund has continued to expand its portfolio following up last month's acquisition of two new industrial assets in Newcastle and Wetherill Park for a joint price of $26.9 million, with an $8.1 million purchase of a warehouse 18 kilometres from Melbourne's CBD.
The fund has spent more than $155 million in acquisitions since March 2014.
IAPF chief executive, Graeme Katz said the 7,149 square metre property at Calaroc Drive, Derrimut, was expected to provide an annualised yield for 7.73 per cent.
According to Money Management, the property has a weighted average lease expiry of eight years and is currently leased to industrial engineering design solutions providers, Groundmaster Engineering Pty Ltd.
"The acquisition aligns well with the fund's strategy of investing in well-located, high quality assets," Mr Katz told Money Management.
"The property is located in a well-established industrial precinct and secured by a strong lease covenant."IAPF will continue in 2015 to grow its portfolio which now includes 10 industrial and five office properties across, NSW, Queensland and Victoria.
