AMP Capital expands global direct property fund
AMP Capital's global direct property fund has purchased an office building in Tampa, Florida for US$32 million and an adjacent land block for $US2.5 million.
AMP Capital fund manager Tim Fallet said the acquisition had 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 per cent through 2017, while supply is projected to grow by a scant 0.4 per cent," he said.
He said the investment offered a much higher yield than similar quality properties in core US markets like New York and Washington.
The A-grade property was renovated in 2006 and is at 91 per cent capacity.
AMP said it had received significant interest in the adjacent land block, which was already zoned for 237 multifamily units.
"We've already had an incredible amount of interest in the residential site from multifamily developers, which reinforces our belief in the approach we're taking," Fallet said.
"We're confident this acquisition will provide our investors with an excellent investment outcome."
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