Investec Australia Property Fund: Brisbane building bought for A$65m

Investec Australia Property Fund had acquired an office and retail building in the Brisbane central business district (CBD) for A$65.5 million (R653.6m), the fund said yesterday. The acquisition would be funded via a renounceable rights offer to existing shareholders in the fund, with the details and timing of the rights offer to be released shortly. It would increase the value of the fund’s portfolio to A$250m, which represents an asset growth of 86 percent since listing late last year. The portfolio comprises six industrial and five office properties located in established commercial precincts within major metropolitan areas. The newly acquired property at 757 Ann Street in the Fortitude Valley area adjacent to the Brisbane CBD provides 10 levels of office space with a retail component on the ground floor and is 100 percent income-producing with leases underpinned by high quality tenants. The acquisition is subject to the fulfilment of several conditions. The linked units lost 2c to close at R11.38. – Roy Cokayne