OFG Property Division back on acquisition trail
Announced by: OFG
Announced on: 29/10/2009 17:05:00
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Words: 587
Status: Market sensitive (Y)
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Over Fifty Group Limited ABN 22 095 454 336
call 1300 50 50 50 fax (03) 9629 3397 visit Level 30, 367 Collins St, Melbourne, Vic 3000. post GPO Box 695, Melbourne, Vic 3001.
VIA ELECTRONIC LODGMENT
29 October 2009
Australian Stock Exchange
Company Announcements Platform
Press Release 29/10/2009
OVER FIFTY GROUP'S PROPERTY DIVISION BACK ON ACQUISITION
TRAIL WITH MAJOR ADELAIDE CBD ACQUSITION
Over Fifty Group's ("OFG") property funds management subsidiary, Century
Funds Management, is back on the acquisition trail, exchanging contracts to
purchase the office component of a new 19 level mixed use building at
131 Grenfell Street Adelaide for $16.4 million.
The acquisition for OFG's new unlisted property fund is a 4,052 square metre
property leased over a 10 year term to the South Australian Government and
will be occupied by the Department of Infrastructure, with annual 4 per cent
rent reviews.
The acquisition takes OFG property funds under management to $895 million
and total funds under group management to $1.9 billion.
CEO of OFG, Mr John McBain said, "Century has been cautious over the past
18 months and while many properties have been reviewed, none were
purchased. It is only now that we are seeing good quality investment grade
property entering fair value range.
"It is helping the property group that we have fewer competitors for these sorts
of properties. We are one of the few direct property players with the ability to
purchase in the current market and the prospects for OFG further increasing
its funds under management are extremely positive.
"We have isolated the Adelaide market as having particularly strong
fundamentals and it has the lowest office vacancy rate of all Australian capital
cities (5.2%). Initial interest from Century's client base is very strong and is
anticipated that the offer will be subscribed quickly," added Mr McBain.
Century has formed a new single asset unlisted property trust, "Century
Property Trust No 13" to hold the asset and the forecast trust return is
8 per cent, increasing each year in line with the annual rent reviews.
Mr Bain said, "OFG has aggressive plans to strengthen our property funds
under management and we see the current environment as a once in a
lifetime opportunity to secure quality investment grade property on behalf of
our established client base."
At the same time OFG Friendly Society bonds are experiencing a resurgence
of interest as their tax effective benefits become increasingly attractive in the
light of recent changes to regulations which restrict the amount individuals can
contribute to superannuation.
OFG is developing a range of new bonds to be released to the market
following regulatory approval.
For further information:
John
McBain
Tim
Allerton
OFG
City PR
(0417) 868 869
(02) 9267 4511.
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