AMP Capital adds Florida office building to its global property portfolio
18 February 2013
News, Australia, Global, USA
By Asia Asset Management
AMP Capital's Global Direct Property Fund (GDPF) has purchased a core office building in Tampa, Florida for US$32 million as well as an adjacent land site for $2.5 million. The acquisition follows the recent purchase of a Boston office property for $17.6 million, announced last month.
With 180,000 square feet over 12 stories, the Two Harbour Place office building is located at the southern end of the Tampa CBD on prestigious Harbour Island, a high-end master-planned development. The A grade property was significantly renovated in 2006 and is currently 91% occupied with multiple quality tenants.
AMP Capital Fund Manager Tim Fallet said the acquisition has been made at a good time in the cycle, in a secondary market poised for growth and with the cost of debt at historical lows.
"Tampa's three million square metres of institutional grade office stock ranks on par with Brisbane, the third largest office market in Australia. It's a market poised for a strong recovery with average annual rental growth in the Tampa CBD projected to be 4.9% through 2017, while supply is projected to grow by a scant 0.4%," Mr Fallet said.
"This is an attractive investment as we are able to invest in select secondary US office markets which offer a much higher yield than similar quality properties in core US markets like New York and Washington."
The adjacent 5,100 square metre land parcel is already zoned for 237 multifamily units. AMP Capital will implement a strategy to both unlock value in the office building and improve the development opportunity for the land parcel.
The AMP Capital Global Direct Property Fund provides Australian superannuation funds with access to core and core plus direct property investment opportunities in large, liquid and transparent offshore markets. The fund invests in a strategic mix of international direct property assets across all the property sectors.
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