Investec Australia Property Fund buys property

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Johannesburg - The Investec Australia Property Fund [JSE:IAP], operated by Invectec Property Limited, has entered into a contract for sale with B.G.S. Nominees to acquire the property located at 30-48 Kellar St, Berrinba.

The effective date of the acquisition is scheduled for October 31 2014 and there are no conditions precedent to the acquisition. The purchase consideration is AUD 8 200 000, which represents an annualised property yield of 8.34% (7.77% after all transaction costs, based on the net passing income.

The purchase consideration and all transaction costs will be funded through the existing debt facility with Westpac Banking Corporation.

The company said in a Sens statement issued on Thursday that the acquisition is consistent with the fund's strategy of investing in well located, high quality assets. It is actively seeking opportunities to grow and diversify the fund's asset base, enhance unitholder value and contribute to sustainable income growth.

The income from the acquisition is underpinned by a lease to H.J. Langdon & Co, one of Australia's oldest private companies, with contracted annual growth of 3.15%. The lease expires in November 2019 with two further four year options.

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