This article originally appeared in Courier Mail (print publication).
Fund Manager Real Asset Management (RAM) has snapped up a 23-storey A-grade office tower in the heart of the Brisbane CBD.
On behalf of investors RAM paid $141.3m for the tower at 333 Ann St in a deal struck by CBRE’s Bruce Baker and Peter Chapple on behalf of Growthpoint Properties.
RAM head of real estate Matthew Strotton said the tower will become the fifth asset in the unlisted RAM Diversified Property Fund which has a portfolio of $500m across four states.
“This attractive deal increases exposure to the high-growth Brisbane market, is in a desirable CBD location and provides access to strong contracted rent growth as well as potential value-add opportunities,” he said.
“We are at a point in the cycle where taking a position in pre-existing, well-let assets with long-term contracted income is very attractive. But more importantly, RAM, as an active manager, continues to pursue opportunities to further diversify and enhance both income and longer-term growth prospects of the portfolio under management.”
The off-market transaction realised a passing yield of 7.03 per cent.
The building has a 4.15-year WALE (Weighted Average Lease Expiry), compromises a 16,301sq m net lettable area and is 100 per cent leased. RAM anticipates settlement by the end of 2022.