Lendlease managed Australian Prime Property Fund (APPF) Commercial has sold an office building in Canberra to local asset manager Real Asset Management (RAM) for A$115m (€71.4m).

APPF Commercial acquired the 16,650sqm building at 25 Constitution Avenue in the national capital for A$31m in 2000, after completion in 1988.

The office fund renovated the building before securing a Federal government department as major tenant in March this year.

RAM Australia managing director Scott Kelly confirmed to IPE Real Assets that it had acquired the asset for its RAM Diversified Property Fund. It is understood the fund’s main backers come from offshore.

It was the second asset to be added to the fund, which was an unlisted direct property entity targetting high-quality defensive assets with strong tenant covenants and fixed annual rental escalations, Kelly said.

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