Abacus buys CBD fringe properties for $142 million

Abacus buys CBD fringe properties for $142 million

Abacus Property Group has bought into the CBD fringe of Australia's two biggest capital cities, acquiring assets for a combined $142.35 million.

Abacus acquired the two properties located at Abbotsford in Melbourne and Alexandria in Sydney for $93.5 million and $48.85 million respectively.

The Abbotsford properly is fully tenanted as a global headquarters for ASX listed company Computershare, on a triple net lease.

The property includes more than 16,000sqm of high-quality office space overlooking the Yarra River.

Completed in 2016, the Sydney property at Alexandria is a more recent build including office spaces across ground and three upper levels. It is fully leased to five tenants

The property will have a weighted average lease expiry of over six years at settlement.

Abacus says the properties both represent strategic long-term investments.

"They have been acquired at an attractive rate per square metre and provide access to stable and growing cash flows from high quality tenants," the company said in a release.

Abacus also says fringe CBD assets that appeal to the millennial market are expected to provide significant longer-term growth prospects, particularly as market rates improve and the areas "continue to undergo gentrification".

It is anticipated both properties will settle by the end of March 2018.

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