South African property fund expands into Victoria
A South African listed property fund is continuing its push into the Australian market, with the purchase of its first property in Victoria.
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 18km from Melbourne's CBD.
IAPF chief executive, Graeme Katz said the 7149 square metre property at Calaroc Drive, Derrimut, was expected to provide an annualised yield for 7.73 per cent.
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," Katz said.
"The property is located in a well-established industrial precinct and secured by a strong lease covenant."
The purchase sees the funds spending hit $155 million since March 2014.
Katz said the fund would continue to "actively" seek opportunities to "grow and diversify" its portfolio, which now includes 10 industrial and five office properties, across, NSW, Queensland and Victoria.
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