Investec Australia Property Fund (IAPF) has invested AUD160m (€113m) in two office buildings near Sydney.

The fund, listed on the Johannesburg stock exchange, bought North Ryde and Frenchs Forest for AUD85m and AUD 75m, respectively, reflecting 7% and 7.5% yields.

The North Ryde Property, built in 2004, includes 15,055sqm of office space.

The Frenchs Forest property includes two separate buildings of 12,366sqm and 3,219sqm of office space and 3,979sqm of warehousing.

Graeme Katz, chief executive of IAPF, said: “These acquisitions are attractive in that they increase our exposure to Australia’s largest and best-performing economy of New South Wales.

“These properties secure medium-term income for the fund with a weighted average lease expiry of at least 4.1 years.

“Furthermore, the buildings have extremely low vacancy rates, are occupied by quality tenants and are ideally located to benefit from re-zoning initiatives and surrounding infrastructure developments.”

Katz said the investor was starting to see rental growth in most of Sydney’s office markets.