The Manning Clarke building located at 186 Street Tuggeranong is a single tenanted four level building with a net lettable area of 5,403m² and represents a yield of 7.84 per cent.
The building recently underwent a significant upgrade and refurbishment and includes 158 car parks within the total 9,458m² site area.
The property is leased to the Commonwealth of Australia on a 10-year lease expiring in February 2023.
The lease has two further four year options with annual contracted growth of 3.5 per cent.
The acquisition was funded through existing debt facilities which saw the Fund’s gearing rise from 14.4 per cent to 26.8 per cent.
The debt has been 100 per cent hedged at an all-in rate of 4.7 per cent in line with the Fund’s hedging policy.
IAPF chief executive Graeme Katz said the addition of the Manning Clarke building to the fund aligns well with the fund’s strategy of investing in high-quality office properties situated in key metropolitan areas.
“We continue to seek growth and diversification opportunities that enhance unitholder value and contribute to sustainable income growth,” said Mr Katz.
