Investec Australia Property Fund entered into an agreement to acquire Two Separate Buildings at 20 Rodborough Road and 24 Rodborough Road from The Blackstone Group L.P. (NYSE:BX) for AUD 75 million.

Investec Australia Property Fund (JSE:IAP) entered into an agreement to acquire Two Separate Buildings at 20 Rodborough Road and 24 Rodborough Road from The Blackstone Group L.P. (NYSE:BX) for AUD 75 million on January 16, 2017. The purchase consideration equates to an initial passing yield of 7.5% and a fully leased yield of 8%. The transaction will be funded through a right issue offer of AUD 150 million and from existing syndicated debt facility with Westpac and ANZ amounting to AUD 20 million.

The transaction is expected to close within 5 business days after the Investec Property Limited provides the vendor with a notice to complete, which is anticipated to be March 6, 2017.