GDI Property launches office trust fund
GDI Property Group has launched a fund to raise $48.5 million to purchase a premium grade office building located in the heart of the Adelaide CBD.
GDI Premium Office Trust has acquired The Grenfell Centre for $76 million, which GDI claims is about 47 per cent below replacement cost.
The seven-year, fixed life office trust, which will have an initial conservative gearing of about 45 per cent, will target a regular income distribution of 10 per cent per annum in financial year 2010 and 10.5 per cent in 2011.
Investors will be able to take advantage of the tight commercial property leasing market in Adelaide’s CBD, according to GDI managing director Steve Gillard.
“We’re seeing investors move back into direct property, seeking a safe investment in bricks and mortar in preference to investing in the volatility of the share market,” he added.
Fundraising is scheduled to close on the earlier of June 30, 2009, or on the raising of $48.5 million in equity.
Recommended for you
Commentators have said Australian fund managers are less knowledgeable compared with overseas peers when it comes to expanding their range with ETFs and underestimating the competition from passive strategies.
VanEck is to list two ETFs on the ASX next week, one investing in residential mortgage-backed securities and the other in Indian companies.
Perpetual outflows have risen by 134 per cent from the previous quarter as the result of client mergers and rebalancing including $2.5 billion in outflows at Pendal Asset Management.
ClearBridge Investments has expanded investor access to its global infrastructure investment strategies through the launch of three active ETFs on the ASX.
