If the option is exercised, settlement of the property will occur in late October 2014 at 26.1 per cent premium to purchase price and 11.8 per cent to the independent valuation, according to Impact Funds Management.
The property purchase will be accretive to the DPF’s income return and will be funded by capacity within the existing debt facility of the fund, which has a current gearing level of 38 per cent.
The property is located at 200 Victoria Street, Carlton in Melbourne and is a high-quality, A-grade office building with seven levels. The office is 7,490 square metres over six levels while the retail space covers 422 square metres on the ground floor.
Australian Unity said the acquisition will improve the DPF’s “geographic, sector and tenant diversification as well as the earnings and distribution return for investors by providing stable, secure, long-term cash flow”.
