Daily Bulletin

  • Written by PR Newswire Asia - Daily Bulletin Au RSS

SYDNEY, Aug. 13, 2021 /PRNewswire/ -- Irongate Group (ASX: IAP; JSE: IAP) has today announced the acquisition of an office building located at 34 Southgate Avenue, Cannon Hill QLD (Property) for $36,000,000, which represents an initial yield of 5.0%.  

The property is being acquired on a fund-through basis with construction completion expected to occur in July 2022. IAP will earn a coupon of 5.0% during the construction period. The development is being undertaken by Anthony John Group, a highly experienced Queensland-based developer.

Once completed, the building will comprise 3,520m² of lettable area with two levels of underground car parking, and will be occupied on a 10 year lease by ASX-listed Michael Hill (ASX:MHJ), an international multi-channel retail jewellery chain with 285 stores across the globe. The building will be used by Michael Hill as its global head office and will also provide the tenant with manufacturing and distribution capabilities.

The building is located in the Southgate Corporate Park, 6 kilometres east of the Brisbane CBD in close proximity to the Gateway Motorway, providing excellent connectivity to the northern, southern and eastern suburbs of Brisbane as well as the Brisbane Airport and the Port of Brisbane.

Commenting on the acquisition, IAP CEO Graeme Katz said: "The acquisition aligns with IAP's strategy of investing in well-located, high quality assets that provide a sustainable income stream for investors. The acquisition will deliver IAP with a brand-new building with 10 years of income growing at 3% per annum supported by a high-quality tenant."

"The acquisition continues our recent theme of acquiring assets in Brisbane, a market we believe currently offers relative value to both Sydney and Melbourne. Together with the industrial acquisitions in Brendale, Pinkenba, Kingston and Morningside, IAP has deployed close to $100 million over the past 6 months in Brisbane at an average yield of 5.5% with a weighted average lease term of more than 8 years. Four of the five acquisitions have been on a fund-through basis which provides stamp duty savings of approximately 25 basis points," Katz added.

The acquisition will be funded by utilising IAP's existing debt facility.

Authors: PR Newswire Asia - Daily Bulletin Au RSS

Read more https://www.prnasia.com/story/archive/3473299_AE73299_0

The Conversation

Business News

Hedge Fund Portfolio Manager Cade Bradford Knudson Speaks About Market Outlook

"Inflation may be abating, it's time to take a serious look at the market," says Cade Knudson, hedge fund portfolio manager. Knudson is a financial professional that has extensive experience managin...

NewsServices.com - avatar NewsServices.com

Mikhail Kokorich Shares 7 Business Tips for New Entrepreneurs

Mikhail Kokorich is a serial entrepreneur, investor, and CEO of Destinus, a company well-known for developing a high-speed aircraft that combines an airplane and a rocket. In this article, he sha...

Daily Bulletin - avatar Daily Bulletin

Everything You Need to Know About Outsourcing to Third-Party Vendors

You may have a growing business and not intend to slow down. However, your business’s needs must also be growing, and it will get increasingly challenging to stay on top of everything, especially ...

NewsServices.com - avatar NewsServices.com

WebBusters - Break into local search