Property investment manager GDI Property Group has purchased an Adelaide property for the GDI Premium Office Trust for $76 million.
The property located at 25 Grenfell Street, Adelaide, was valued at $79 million before settlement.
GDI said the purchase price reflected a passing yield of 10 per cent and $3010 per square metre, a rate that is about half the replacement cost.
A recent rent review in the building has been negotiated in excess of GDI's forecasts.
"Forecast income distribution is 10 per cent for the 2010 financial year and 10.5 per cent for the 2011 financial year," GDI said in a statement.
Meanwhile, GDI is close to full subscription and while there is limited room for some further subscriptions, once $48.5 million in subscriptions has been raised the fund will close.
It is anticipated this will take place in the coming weeks.
In February, GDI closed its Number 29 Office Fund oversubscribed after raising $23.5 million.
GDI manages $350 million in commercial property assets throughout Australia.
