KordaMentha Funds Management (KMFM) today announced the purchase of two commercial office buildings valued at $48.5 million and the launch of a new wholesale property fund.
- KordaMentha Funds Management acquires high quality office portfolio
- Strong tenant covenants, 100% leased and long WALE
- Completion of successful $28m capital raising prior to settlement
KordaMentha Funds Management (KMFM) today announced the purchase of two commercial office buildings valued at $48.5 million and the launch of a new wholesale property fund, the Cambridge Bedford Property Fund. The properties, located in Cambridge Hobart and Bedford Park Adelaide are leased to Hydro Electric Corporation, an integrated energy business owned by the State of Tasmania, and Westpac Banking Corporation.
Tom Davis of KordaMentha commented, "We were attracted to the portfolio as both properties have excellent lease covenants, long leases and are 100% occupied. The combined weighted average lease term of the portfolio is 5.5 years".
KMFM completed the capital raising of the Cambridge Bedford Property Fund prior to settlement. Mr Davis added, "The fund offering to investors was compelling, resulting in the fund being over-subscribed and us raising $28 million in three weeks. Investors were attracted to the Cambridge Bedford Property Fund's forecast 8.5% distribution yield, the strategic nature of the assets, and the attractive purchasing metrics of the properties."
The fund is the fourth in KordaMentha's property funds platform since acquiring Placer Property in August 2017 and brings total assets under management to $175 million.