Fund manager KM Property Funds have acquired a three-level commercial office building in the suburb of Bruce on a yield of 6.25%.
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The group have paid $39.3m for the building which is fully leased to the Australian Institute of Health and Welfare until June 2029. The building has a net lettable area of 5,848 sqm, as well as 68 undercover and 142 on-grade car parks. The building has a five-star NABERS energy rating.
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Established in 1987, the Australian Institute of Health and Welfare (AIHW) is an independent statutory authority of the Commonwealth Government of Australia. AIHW is a leading research agency that collects data and provides reports and statistics about Australia’s health and welfare, employing approx 500 staff.
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The property is near the growth district of Belconnen and is adjacent to the University of Canberra and the Australian Institute of Sport. The property is approximately 8 km from Canberra’s Civic, the central business district of our nation’s capital.
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KM Funds will house the asset in a special purpose trust which has been fully underwritten by KordaMentha. The group are however seeking to raise $24.5m from retail and wholesale investors including self-managed superannuation funds, and retirees, targetting a 7% distribution yield.
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The building was offered for sale through Colliers by local developers B and T Constructions.
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