Investa Commercial Property Fund ("ICPF" or the "Fund") is pleased to announce that it has acquired a 50% interest in 567 Collins Street, Melbourne, from Leighton Properties. The new Premium Grade office building, currently under construction, is due for completion in mid-2015.

The 50% interest will cost the Fund approximately A$231 million and will result in a yield of 6.7 percent. The acquisition will see the Fund grow to over $2 billion in gross assets once the building is completed. The tower is being acquired as a 50/50 joint venture with ASX-listed Investa Office Fund.

Situated in a prime location at the Western end of Collins Street, the large 3,942 square metre site has prominent frontage to Collins Street with nearly 50% of net lettable area already pre-committed on long term leases to tenants, including Leighton Contractors and Corrs Chambers Westgarth.

The building incorporates 55,000 square metres of net lettable area comprising office and retail areas. Floor plates are large at 2,000 – 2,500 square metres with the building targeting a 5 Star Green Star (by design) rating and a NABERS Energy rating of 5 Stars. The acquisition increases ICPF’s exposure to premium assets and reinforces the Fund’s green credentials.

Commenting on the acquisition Peter Menegazzo, Investa Group Executive and Fund Manager of ICPF said: "We are very pleased to have secured an investment in such a high quality building in this part of the market. Given the ongoing revitalisation of Melbourne’s western CBD over the past 10 years with the expansion of Docklands, we are excited to be involved in a development that will deliver a new generation, premium grade asset to this precinct, at an affordable rental rate.

The acquisition complements ICPF’s two existing east-end investments in the Melbourne CBD at 120 Collins Street and 242 Exhibition Street, providing the Fund with unrivalled exposure to one of our core markets. All in all, this is a welcome addition to our portfolio,” said Mr Menegazzo.

Mr Campbell Hanan, Group Executive and Head of Investa Office said: “We have assessed a number of acquisition opportunities recently, and this one was a standout given the premium standard of the asset, quality of the pre-commitment tenants and opportunity to add further value through the leasing strategy. There is a real opportunity to add long term value in a market we know very well, given our local presence and integrated management platform.”

The acquisition follows an active period for ICPF, which raised A$220 million during 2012 from both existing and new offshore and local investors. New capital was recently used to fund the acquisition of a further interest in Deutsche Bank Place at 126 Phillip Street Sydney and 120 Collins St Melbourne. The Fund also recently sold its interest in 231 Elizabeth Street, Sydney.

Mr Menegazzo added: “We have raised nearly A$700 million in capital since the end of 2010, so our strategy has been well supported and backed by a series of high quality investments.Our balance sheet is well positioned, and with ongoing interest from investors, we expect to remain active buyers as long as quality investment opportunities that meet ICPF’s objectives are available.”