Investa Office Fund says it is looking to increase its footprint in Western Australia’s commercial office market, after acquiring the building at 66 St Georges Terrace for $82.4 million.
The fund said the acquisition would be funded from existing debt facilities.
The 11,447 square metre office tower is leased at an average rent of $550/sqm, with a 1.8 year weighted average lease expiry.
The building's anchor tenants, which take up 74 per cent of the buuilding by income, are Manpower, ASIC, Subsea 7 and Suncorp.
IOF fund manager Toby Phelps said the fund was well placed to acquire assets at what he considered an opportune time in the property price cycle.
“IOF is underweight in Perth, which is currently the strongest office market in Australia,” Mr Phelps said.
“This asset will improve portfolio diversification and allow the fund to capture short term rental growth potential from the current low vacancy levels and strong tenant demand in this market.”
Settlement of the transaction is expected to take place August 31.
