GDI Property launches office trust fund
GDI Property Group has launched a fund to raise $48.5 million to purchase a premium grade office building located in the heart of the Adelaide CBD.
GDI Premium Office Trust has acquired The Grenfell Centre for $76 million, which GDI claims is about 47 per cent below replacement cost.
The seven-year, fixed life office trust, which will have an initial conservative gearing of about 45 per cent, will target a regular income distribution of 10 per cent per annum in financial year 2010 and 10.5 per cent in 2011.
Investors will be able to take advantage of the tight commercial property leasing market in Adelaide’s CBD, according to GDI managing director Steve Gillard.
“We’re seeing investors move back into direct property, seeking a safe investment in bricks and mortar in preference to investing in the volatility of the share market,” he added.
Fundraising is scheduled to close on the earlier of June 30, 2009, or on the raising of $48.5 million in equity.
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