Fund manager KM Property Funds have acquired a three-level commercial office building in the suburb of Bruce on a yield of 6.25%.
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.
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.
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.
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.
The building was offered for sale through Colliers by local developers B and T Constructions.
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