Voluntary announcement - Acquisition of new property
INVESTEC AUSTRALIA PROPERTY FUND
Operated by Investec Property Limited (ACN 071 514 246; AFSL 290 909) (“Responsible Entity”)
and registered in Australia as a managed investment scheme under the Corporations Act 2001 (Cth) (Australia)
(ARSN 162 067 736)
Registered in terms of the Collective Investment Schemes Control Act No.45 of 2003
Share code: IAP
(“IAPF” or the “Fund”)
VOLUNTARY ANNOUNCEMENT – ACQUISITION OF NEW PROPERTY
Unitholders are advised that the Fund has entered into and completed a contract for sale with Westtech
Holdings Pty Limited (ABN 44 113 585 069) to acquire an office building located at 24 Wormald Street,
Symonston ACT 2609 (Property).
The effective date of the acquisition of the Property is the settlement date under the contract for sale which is
today’s date, being 12 March 2019.
2. Purchase consideration
The purchase consideration is AUD 29,750,000 which represents an initial passing yield of 6.93% (6.55% post
all transaction costs).
The purchase consideration and all transaction costs have been funded through the existing syndicated debt
facility with Westpac Banking Corporation and Australia and New Zealand Banking Group Limited at a margin
of 110 basis points for a 12 month term. The Fund’s gearing post the acquisition of the Property will be 38.93%
with a weighted average cost of debt of 3.86% and hedged to 77.00% for an average of 5.3 years.
3. Rationale for acquisition of the Property
The acquisition of the Property is consistent with the Fund’s strategy of investing in well located, high quality
assets. The Responsible Entity is actively seeking opportunities to grow and diversify the Fund’s asset base,
enhance unitholder value and contribute to sustainable income growth. The acquisition of the Property
represents an attractive investment for the Fund for the following reasons:
• Long term contracted income with a lease expiry of 8.5 years and fixed escalations of 3.5% per
• Strong covenant, 100% leased to Commonwealth of Australia (Attorney-General’s Department)
• Purpose built facility constructed in 2007 to the specification of the Commonwealth of Australia with a
high level of plant redundancy
• On-site car parking for 113 vehicles
• Sophisticated corporate tenants in immediate precinct including Telstra, Aristocrat, Australian
Pesticides and Veterinary Medicines Authority, Canberra Eye Hospital and WOTSO
• The purchase price represents a rate per m² of AUD 6,303 which is below recent comparable sales
• Purchase price is at a discount to replacement cost of approximately 11%
• The Property is located in close proximity to key arterial road networks: Canberra Avenue (300m),
Monaro Highway (1.2km) and Hindmarsh Drive (1.3km)
• The acquisition is accretive to the Fund
4. Specific information relating to the Property
Registered description Certificate of Title Volume 1744 Folio 73
Title 99 year Crown leasehold (commenced in 2005)
Location Symonston, 7 kms south east of the Canberra CBD
Year built 2007
Site area 5,185m2
Gross lettable area 4,720m²
Rent per m2 AUD 453/m² (gross office rent)
The Property has been valued at AUD 29,750,000 as at 8 February 2019 by Savills Valuations Pty Ltd (ABN
73 151 048 056). The valuer, Philip Harding, is an independent valuer and is recognised by The Australian
Property Institute as a Certified Practising Valuer.
The acquisition is not a categorised transaction in terms of the JSE Listings Requirements and is therefore not
subject to unitholder approval. This announcement is voluntary and for information purposes only.
12 March 2019
Financial Advisor and Sponsor
Investec Bank Limited
Date: 12/03/2019 07:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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