With the settlement date scheduled for 31 March 2015, it brings the fund's total portfolio to $328 million.
Located at 21-23 Solent Circuit in Baulkham Hills, the 11,610 square metre office building is currently 85% leased with scope to deliver additional income to the fund through active leasing of the vacant space. In the heart of Sydney's growth corridor, the property will greatly benefit from the current construction of the North West Rail Link due to be completed in 2018.
IAPF CEO Graeme Katz said the acquisition is accretive to the fund and represents an attractive spread over the fund's borrowing costs.
"We are pleased to make the first office acquisition for the fund in Sydney. Confidence appears to be growing in the NSW economy and the acquisition increases the fund's overall exposure to this market," Mr Katz said.
"Again, the acquisition aligns well with the fund's strategy of investing in well-located, high quality assets," he said.
The transaction also makes up the sale of the final asset in the $375 million Altis Property Partners portfolio that became available last year.
Altis principle Alastair Wright told the Australian Financial Review the deal finally wraps up the sale of the Altis Real Estate Equity Partners 1 portfolio, which included 12 assets worth over $375 million.
"We are pleased to have achieved outstanding returns for investors," Mr Wright said.
"We delivered on the AREEP 1 strategy to acquire a portfolio of industrial and commercial assets, added value to the assets through enhancing the physical attributes of the asset, improving the income and extending the lease expiry profile," he said.
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