AMP Capital has increased the Queensland portfolio of their Wholesale Australian Property Fund after acquiring an A-grade office building in Brisbane for $92.6 million.
Located at 199 Grey Street in South Brisbane, the property is in close proximity to the recreational, retail and cultural precinct of South Bank.
Built in 2008, the 14-storey building was owned by Tribune Properties -- the tower is 94 per cent occupied, with the vacant areas subject to an 18-month rental guarantee. On average, the leases have 4.7 years left to run.
Major tenants include the State of Queensland, KBR and UGL, the acquisition of the tower brings the Fund's property portfolio to a new value of approximately $1.355 million.
"The accommodation is high-quality and from levels 7 there are extensive views of the South Bank Parklands, the Brisbane River and the Brisbane CBD. The Property is also in close proximity to the Southbank Train Station, numerous bus routes, the City Cat and ferry services," AMP Capital said.
About 27.8 per cent of the total portfolio is weighted with Queensland assets, and weighting to the office sector of 40.7 per cent. The portfolio is 97% per cent occupied and there are 340 tenants supporting the Fund’s quarterly income distributions.
The transaction was funded by $75 million of debt, bringing the fund's gearing to about 4.5 per cent.
The off-market purchase was brokered by Savills. This purchase follows the fund's $145 million purchase of Building 1 in Mascot Park, Sydney, from Goodman Group in July.