Investec splurges $160m on pair of Sydney offices
A property fund managed by South African investment bank Investec has bought two suburban Sydney office properties from private equity giant Blackstone for $160 million, increasing its exposure to the buoyant NSW economy.
The South African-listed Investec Australia Property Fund is raising ZAR 1.53 billion through a renounceable rights offer to largely fund the purchase of the buildings in North Ryde and Frenchs Forest.
In December, The Australian foreshadowed Investec’s interest in the properties which are part of a $500m portfolio that Blackstone has on the market.
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IAPF chief executive Graeme Katz says the buildings increase the fund’s exposure to “Australia’s largest and best performing economy”.
The group sees more value in established metropolitan office markets rather than CBD markets, Katz says.
“We are starting to see rental growth in most of Sydney’s office markets and as such, precincts such as North Ryde and Frenchs Forest, which both have comparably favourable net face rents to other Sydney metropolitan office markets, will only become more attractive to cost conscious occupiers.”
The four-level North Ryde building was purchased for $85 million on a yield of 7% while two buildings at 20 and 24 Rodborough Rd, Frenchs Forest were bought for $75 million on yields of 7.5% and 8%.
This article originally appeared on www.theaustralian.com.au/property.