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A rendering of the completed office building at 96 York Street, Beenleigh, Queensland. Image – realcommercial.com.au.
  • Located about 35km south of Brisbane CBD
  • Acquired for $33.52M
  • Mostly leased to Logan City Council

Australian Unity Office Fund (ASX: AOF) today announced the acquisition of 96 York Street, Beenleigh, Queensland.

The acquisition was made for $33.52 million before acquisition costs, and the capitalisation rate was reported as 5.75%.

Located about half an hour south of the Brisbane CBD, the property is a brand new A-grade office building, previously a car park.

The property has a net lettable area of 4,661 square metres over seven levels, with 4,009 square metres of that leased to Logan City Council for 10 years with two five year options and annual rental increases of the greater of 3% or CPI.

AOF said the asset is in an area with significant growth opportunities, the office is located in a government tenant hub, with the Department of Resources, Magistrates Court and Department of Corrective Services all within 600 metres, making the asset ideally located to serve as a long-term home to Logan City Council.

AOF Fund Manager, Nikki Panagopoulos, said, “In undertaking this acquisition, we have been able to recycle capital from the sale of 241 Adelaide Street, Brisbane, an ageing leasehold asset requiring significant capital expenditure…”

Ms Panagopoulos added that the new facility “provides long term income certainty with minimal capital expenditure requirements and sustainable initiatives.”

The asset will be funded with existing debt facilities and settlement is expected in December 2021.

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