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.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Facing the latest impacts of cyber-crime: cyber insurance premiums increase for businesses
Partner Content
As Australian businesses are forced to adapt to a new normal yet again, a different typ...
Aon
Advertisement

Related Stories

Two regional NSW LGAs sent back into lockdown

Two regional NSW LGAs sent back into lockdown

The regional New South Wales local government areas (LGAs) of Hillt...

NSW to trial home quarantine program for overseas arrivals

NSW to trial home quarantine program for overseas arrivals

175 fully-vaccinated people will take part in a home quarantine tri...

CBA faces $51m in fines after pleading guilty to 30 criminal charges

CBA faces $51m in fines after pleading guilty to 30 criminal charges

The Commonwealth Bank of Australia (ASX: CBA) went on the front foo...

City of Melbourne to consider introducing vaccine passport

City of Melbourne to consider introducing vaccine passport

City of Melbourne councillors will vote next week on the introducti...