This article is from the Australian Property Journal archive
AUSTRALIAN Unity’s Property Income Fund (PIF) has acquired a commercial office building in Port Adelaide for $8 million on an initial passing yield of 9.25%.
Located at 296 St Vincent St Port Adelaide, the property comprises a two-storey building with a net lettable area of 3,537 sqm and 39 onsite car parking spaces. The property is fully leased with a weighted average lease expiry of 2.5 years, to tenants including Flinders Ports, China Shipping, South Australian Housing Trust and Community Bridging Services.
PIF portfolio manager Alex Fisher said with government bond yields currently at 2% and PIF currently paying a distribution yield of more than 6% generated, the fund continues to appeal to investors.
“This acquisition is in line with the long-term strategy to grow and diversify the fund through acquisition of new assets, as well as improving existing properties.
“We believe that the outlook for commercial property is positive and continue to look for opportunities for further acquisition and development,”
“With Australian commercial property markets offering higher comparative yields than other international property markets, we believe strong demand from overseas investors for local commercial property is set to continue, providing ongoing support for valuations.
“We believe the fund is well-positioned to provide investors with a consistent, sustainable level of distribution income over the medium term.” Fisher said.
Australian Property Journal
