Irongate buys Michael Hill HQ
Irongate Group (IAP) is buying a Cannon Hill office on a funds-through basis.
The four storey, 3520 square metre building at 34 Southgate Avenue is due for completion next July.
Jeweller Michael Hill is pre-committed for 10 years.
The $36 million purchase price reflects a five per cent initial yield.
Anthony John Group, the vendor, was represented by CBRE’s Jack Morrison and Adelaide O’Brien.
IAP spending spree
“The acquisition aligns with IAP’s strategy of investing in well-located, high quality assets that provide a sustainable income stream for investors,” the purchaser’s chief executive officer, Graeme Katz, said (story continues below).
Michael Hill’s agreement will see rent rise three per cent per annum.
In April, IAP, again on a funds-through basis, snapped up two Brisbane industrial investments – at Kingston and Morningside – for a total of $20.252m – a price which reflects a blended 5.73pc return.
Not long earlier the investor outlaid $24.75m – a 5.3pc yield – for a Pinkenba distribution centre leased to e-commerce business Grays until 2028.
The manager also holds Adelaide’s Rundle Place, for which it paid $210m, with Fortius, and retains in its Templewater Australia Property Fund.
In June, IAP paid Blackstone $73.75m for a four level office in Canberra’s Forrest.
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