Abacus Property Group (ASX:ABP) and its joint venture partner Heitman LLC have bought a commercial office building in Melbourne for $68 million.
The 18 level building is located at 484 St Kilda Road and includes a car park, retail space and office space.
Abacus says the purchase price represents an initial yield of 8.7 per cent excluding transaction costs.
Abacus formed its JV with Heitman in June this year and said at the time both companies are targeting to invest $600 million in office, retail and industrial properties in major Australian gateway cities.
In the 2011 financial year Abacus Property Group reported a net profit of $17.8 million.
