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

Advertisement

Related Stories

Australia gets second scoop of Mövenpick hotel chain in Melbourne

Australia gets second scoop of Mövenpick hotel chain in Melbourne

Global hotelier Accor and Singapore-based Fragrance Group ar...

Bioenergy pioneer Delorean Corporation "multiple times oversubscribed" in IPO

Bioenergy pioneer Delorean Corporation "multiple times oversubscribed" in IPO

Shares in founder-led Delorean Corporation (ASX: DEL) more than d...

Woolies exec Paul Graham named new Australia Post CEO

Woolies exec Paul Graham named new Australia Post CEO

Woolworths (ASX: WOW) chief supply chain officer Paul Graham has ...

Booktopia strikes Zookal deal to boost education sales

Booktopia strikes Zookal deal to boost education sales

After hitting a new record for educational book sales as universi...