ZACD acquires Melbourne office building for A$27.3m

ZACD Group announced on Thursday it has successfully completed the acquisition of an office building in Melbourne for A$27.32 million (S$29.6 million).

It said the transaction was one of the largest in the outer Melbourne suburban office market in the past two years, and marked ZACD's first foray into the Australian real estate market.

The property is located in the heart of Cheltenham's commercial precinct, in the Bayside Business Employment Area, located south-east of Melbourne's central business district, it said.

The 4,921-square-metre, three-storey building sits on a 1.4-hectare site, and is at present fully leased out to iSelect.

ZACD said the asset would provide a stable income stream, with a net yield of the property being at 8.8 per cent.

It also said the acquisition was the first of several properties that ZACD planned to acquire in the coming months.