Thanks to higher than expected leasing, predominately in Sydney, Investa Office Fund’s half-year profits have been reported to have gone up 78 per cent bringing the total profit to $87 million.
Investa Office Fund Manager Ming Long told the Australian Financial Review that the results were due to higher leasing in addition to lowering debt costs.
According to the
Investa Office Fund ASX Announcement, 76 per cent of the portfolio is located in the Sydney and Melbourne areas.
"The increase in FFO [funds from operations] was largely driven by capital re-deployment into two high-quality Sydney assets, Piccadilly and 6 O'Connell Street, which are performing ahead of our expectations due to strong leasing outcomes,” Mr Long said.
Sydney’s Piccadilly complex increased in asset valuation by $16 million, placing Sydney in the lead with regards to asset valuation increases.
The ASX Announcement reports that the 2015 outlook for Sydney and Melbourne continues to improve however Brisbane and Perth are expected to remain challenging.
