Pindan Capital has boosted its investment portfolio with the $18.4 million purchase of the Australian Federal Police Building at Perth Airport.
The transaction represents a yield of 7.5 per cent, while the 3,476 square metre building is subject to a 15-year lease, with two five-year options.
Pindan Capital chief investment officer Scott Staniforth said the funds manager purchased the building on behalf of one of its clients in an off-market deal.
The building was constructed by Pindan’s construction division under a $10 million contract and was only recently completed.
Mr Staniforth said the acquisition was consistent with the fund manager’s strategy of buying investment properties in good locations, with long-term tenants and development potential.
It is the fund manager’s second commercial acquisition, after buying 191 Great Eastern Highway in Belmont in late 2012, which was previously home to BHP Billiton Iron Ore, but has since become Pindan’s headquarters.
“Having a secure AAA tenant like the Commonwealth government on a 15-year lease is very attractive for investors,” Mr Staniforth said.
“Pindan Capital is well known for its residential developments and we are looking to grow our commercial property portfolio as investors seek yielding assets.”
The deal follows Pindan Capital, which was formerly known as Otan, expanding earlier this year, opening new offices in Shanghai and Sydney.
