In a statement from IAPF, it said the acquisition of the Newcastle and Western Sydney properties contribute to a successful year of growth for the fund.
“The two newly acquired properties are underpinned by long-term leases to a single tenant, and provide the fund with a blended yield of 7.92 per cent,” a statement from IAPF said.
IAPF chief executive Graeme Katz said the acquisitions of the property are consistent with the fund’s strategy of investing in well-located, high-quality assets.
“Both properties are conveniently located in established industrial precincts and secured by strong lease covenants,” Mr Katz said.
Mr Katz also said the fund was in a strong position to pursue acquisition opportunities, having recently paid its gearing down to zero following a successful rights offer in October.
“On completion of the acquisitions, the fund’s portfolio will comprise nine industrial properties and five office properties,” IAPF said.
The acquisition of the Western Sydney and Newcastle properties follows the fund’s acquisition of an office property in Canberra for $25.8 million.