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CENTURIA CAPITAL GROUP — Capital/Financing Update 2006
Feb 14, 2006
64677_rns_2006-02-14_aff6ba26-40d3-4279-98f6-759864841408.pdf
Capital/Financing Update
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ASX/MEDIA RELEASE
15 February 2006
VIA ELECTRONIC LODGEMENT Australian Stock Exchange Company Announcements Platform
OFM Expands Property Trust Portfolio
Listed financial services company OFM Investment Group Limited (ASX:OFM) todav announced the exchange of contracts for the purchase of 45 Grenfell Street, Adelaide for an amount of \$23 million. Settlement is scheduled for early April 2006.
Situated in the heart of the Adelaide core office precinct, the recently refurbished property comprises an 18 level office building with ground floor retail outlets and a total NLA of approximately 12,900sqm. The property has been purchased on a current income yield of 9.25%, which equates to a fully let up yield of approximately 9.72%, prior to normal acquisition costs.
Tain Giles, OFM's Head of Products & Distribution, said: "We intend to syndicate interests in the property to external investors later this year. The building is 97% occupied by a range of quality Australian and international tenants including Vero Insurance, BHP, Japan Airlines, and State and Federal government departments and provides an attractive income vield. At the same we believe there are opportunities for solid capital growth through improvements to the lease terms and rentals."
"This acquisition is part of OFM's growth strategy of building up its property funds management business as it diversifies beyond its traditional friendly society investment bond business and expands into funds management and financial services products." added Mr Giles.
The company recently announced the establishment of another property trust in the OFM Resort and Leisure Trust and also received a positive three star rating from Standard & Poor for its Mortgage Income Trust.
The property was secured through Jones Lang LaSalle and Knight Frank in Adelaide. The vendor is Thomco Pty Ltd, a private Adelaide based investor.
For further enquiries please contact:
Mr Iain Giles, Head of Products & Distribution, OFM Investment Group Limited 1800 033 262
Media enquiries: Maureen Clifford, Financial & Corporate Relations 61(0)3 9629 3000/0407 517 427
Established in 1980, OFM Investment Group Limited is a listed financial services organisation providing a range of financial solutions to Australians to fund lifestyle and living needs. These financial products and services cover a range of investment, insurance, mortgages, and equity release products.
www.ofmig.com.au