Cape Town – An Investec Property [JSE:IPF] fund on Wednesday announced the acquisition of a R172m industrial property in Australia.
Investec Australia Property Fund (IAPF) [JSE:IAP] said the A$18.15m property in one of Brisbane’s core industrial nodes brought the value of the fund’s total portfolio to A$379.45m (R3.6bn).
The acquisition will be fully funded with debt, which will take the fund’s gearing to 33%.
The property is 100% leased until December 2021 to Coil Steels, which is part of the Kanji Group, an established family-run building materials business that owns several successful subsidiaries across Australia including Metroll, Tasmania Mines, National Masonry and Pipemakers.
IAPF CEO Graeme Katz said the acquisition is the eighth property acquired by the fund since its rights issue late last year.
“(It reflects) management’s ability to unlock off-market transactions in a very competitive market,” he said in a statement. “The acquisition also reaffirms management’s commitment to the FY16 guidance on distribution growth."
IAPF, listed on the Johannesburg Stock Exchange under the Real Estate Holdings and Development sector, provides South African investors with direct access to the Australian commercial property market.
The 21 930 square metre site is located at 85 Radius Drive, Larapinta, 21km from Brisbane’s CBD, and comprises 10 088 square metres of recently constructed warehouse and associated office. (Photo: Google Street View)