Investec Australia Property Fund acquires A$8.1m property

Investec Australia Property Fund (IAP) has acquired a new industrial property valued at A$8.1m‚ the company announced on Wednesday.

The effective date of the acquisition of the property is the settlement date under the contract for sale‚ which occurred simultaneously with signing the contract for sale on Wednesday.

There were no conditions precedent to the acquisition of the property‚ the company said.

It said the purchase consideration and all transaction costs would be funded through the existing debt facility with Westpac Banking Corporation.

The acquisition of the property‚ which is located in one of Melbourne’s most established industrial areas‚ was consistent with the fund’s strategy of investing in well located‚ high quality assets‚ according to the company.

It said the acquisition represented an “attractive investment” for the fund as it was accretive based on the positive spread between the property yield and funding costs; and that the majority of the income (93%) was underpinned by a lease to an engineering firm‚ among other factors.

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