Quanta Invests in Fully Tenanted Mackay CBD Asset
QUANTA INVESTMENT FUNDS LATEST INVESTMENT: Mackay CBD Office Asset
Australian property investment group Quanta Investment Funds has expanded its portfolio with the acquisition of a fully-occupied office building in Mackay’s CBD.
The 9 Tennyson St asset was purchased for $6.625m and comes hot on the heels of the group’s August purchase of an industrial asset at 91 Connors Rd in Paget, Mackay, for $16.7m.
The 1778 sqm double-storey premium office building is fully-leased and has a 5-star NABERS energy rating, the minimum government requirements for new leases. The sale realised a yield of 8.29 per cent.
The Queensland government and Fortune 500 company Caterpillar Inc occupies 93 per cent of the building and the remaining ground floor space is occupied by civil engineering firm Pentacon.
Quanta Investment Funds chief executive Stacey Jones said the acquisition provided both security of income and peace of mind to investors in an uncertain market.
“This is a highly defensive investment for our portfolio, offering our investors a WALE (weighted average lease expiry) of 4.7 years with significant potential for rental income growth through the upcoming re-lease of the space,” she said.
“With rents under existing lease agreements as much as 34 per cent below current market rates, we’re well positioned to capitalise on this opportunity and further improve the property’s net income position, with substantial value uplift opportunities.
Article by The Courier Mail
Written by Chris Herde