Australian Unity Investments (AUI) Property Income Fund (PIF) has purchased a two level office building at 172 Moreland Road, Brunswick, in Victoria, for $13 million.
This is the fourth direct property purchased by PIF this year, taking the Fund’s direct property assets to nine and increasing the fund’s direct property allocation to $73 million. The Fund currently has $164 million in funds under management and invests in a portfolio of direct property, unlisted and listed property securities, and cash.
The property is a modern 4,200 square metres office building with a secure basement car park for 70 vehicles, constructed around 1997. It is fully leased by Centrelink until 2012 with the option of a further five year term. The property’s passing yield is 9.34%.Mr Martin Hession, AUI’s head of property, said that the property is a very strong addition to PIF, and satisfies the Fund’s strict acquisition criteria by providing investors with secure income as well as the potential for capital growth.
“This purchase also increases the direct office component of PIF, and provides investors with additional diversification and tenancy mix benefits.
“We are very positive about the outlook for the property market in Victoria, specifically for offices in inner city Melbourne suburbs and believe that this acquisition, and its proximity to roadways and Melbourne CBD, make it an excellent investment.
“The building is in excellent condition and has a good long-term tenant in the Commonwealth of Australia,” Mr Hession said.
The Property Income Fund – Wholesale Units has produced a distribution return of 10.31% pa and a total return of 11.17 % pa over five years.*
-oOo-
For more information please contact:
Martin Hession
Email: mhession@australianunity.com.au
Australian Unity Investments is the funds management arm of financial services, health and retirement living services provider Australian Unity. It has over $6.6 billion in funds under management. Its approach to product development is to use its established in-house expertise in property and mortgages while also forming joint ventures and strategic alliances with other organisations with specialist expertise.
* Performance information current at 30 April 2008. Returns are calculated after fees and expenses and assume the reinvestment of distributions. Past performance is not a reliable indicator of future performance.
This press release is for general information only and has been prepared without taking into account any person’s specific investment objectives, financial situation or particular needs. Australian Unity Property Limited ABN 58 079 538 499, AFS Licence No 234455 is the Responsible Entity of the Property Income Fund – Wholesale Units, applications for an investment in the Fund can only be made using the application form in the current a PDS, a copy is available by calling 1800 649 033 or visiting australianunityinvestments.com.au