AMP Capital's Global Direct Property Fund (GDPF) has purchased a core office building in the US for US$17.6 million.
The Boston, Massachusetts property is the fund's first acquisition in the US since the global financial crisis (GFC), AMP Capital stated.
The manager described Two Liberty Square as a "historic B Grade office building centrally located in the most established and densely built area in the Boston financial district."
The asset is poised for near-term growth and long-term stability, consisting of over 64,000 square feet over 11 stories, and is currently 81 per cent occupied, AMP Capital stated.
"Located in the Boston central business district, greenfield sites are non-existent and new office space is entirely dependent on refurbishment and conversion of established buildings, placing upward pressure on office rents," AMP Capital fund manager Tim Fallet said.
"AMP Capital was able to secure the property at a steep discount to replacement value and 25 per cent below the price at which it last traded at the 2007 peak."
Mr Fallet said it was an opportune time to secure scarce assets in tightly held markets at an attractive price with good growth potential. "We expect to announce further acquisitions and divestments in the next few months as we capitalise on this favourable stage in the market cycle," he said.
