Abacus Property Group
(ASX:ABP) has bought a stake in the World Trade Centre Melbourne with global private equity firm KKR.
Both companies have inked a deal to acquire a 70 per cent interest in Towers 2, 3 and 4 of the center for $120.4 million. The remaining 30 per cent co-ownership interest will be retained by the vendor, Asset 1 WTC.
While the transaction is subject to approvals Abacus expects the deal will annually provide an initial yield of 9.3 per cent.
The investment is KKR’s first Australian real estate investment and they will fund 75 per cent on the venture with Abacus funding the remaining 25 per cent.
Abacus Property Group reported a net profit of $48.9 million in the first half of the 2014 financial year.
