Health insurer Australian Unity has added a sizeable corporate office and warehouse in Rowville to its property portfolio for $15.1 million.
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The group's head of property funds, Mark Lumby, said the 20,950-square-metre property at 19 Corporate Avenue included a modern 12,300-square-metre corporate office and warehouse leased to Regal Beloit until April 2022.
Australian Unity's Diversified Property Fund snapped up the property in a tightly held industrial pocket on an initial yield of 7.6 per cent.
As a result of the purchase, the fund's asset diversification was 30 per cent industrial, 33 per cent retail and 37 per cent office property, with assets in NSW, Queensland, Victoria and Western Australia, Mr Lumby said.
The fund is forecasting a distribution range for the year to June 30, 2016, of between 8.0 per cent and 8.3 per cent.
Australian Unity recently launched a capital raising, offering units at a 5 per cent discount to the fund's net asset value to raise a maximum $50 million over 12 months.
Melbourne's south-east has an industrial vacancy rate of 4.2 per cent on buildings larger than 10,000 square metres, the latest Urbis Melbourne Industrial Vacancy Study shows.
