Australian Trust Acquires Two Net Leased Properties in US

The Financial Standard - October 26, 2005

Listed property trust Mariner American Property Income Trust (MAPIT) is to buy two US properties with a combined worth of just under $160 million. MAPIT has entered into contracts to purchase the FedEx freight terminal near New York City for US$25 million ($34 million) and the headquarters of computer security group RSA in Boston for US$95 million ($125 million).

The acquisitions will more than double the total value of properties held by the Trust to $286 million. MAPIT's investment strategy is to invest in high-grade US properties with long-term quality tenants. With the FedEx purchase, FedEx Freight East Inc will lease the property for a 13-year term. With the RSA Security Headquarters, RSA will lease for an 11-year term. According to the group, the FedEx property boasts a lease yield of 7.3 percent while the RSA office building will return a higher 8.16 percent over the term of the lease. Sphere: Related Content