Blackstone has sold an office building in Australia’s capital Canberra to the listed Irongate Group for A$73.75m (€46.8m).

Irongate, formerly Investec Australia Property Fund, has launched a fully underwritten placement to raise A$50m to part-finance the acquisition.

Irongate CEO, Graeme Katz, said the balance of the purchase cost would be funded under a new tranche of the debt facility provided by Westpac, ANZ and PGIM.

“The Canberra office market proved resilient through the COVID-19 pandemic, underpinned by the government sector. The property is located 500m from Parliament House in a precinct with A-grade vacancy of less than 1%,” he said.

Blackstone inherited the Canberra office building when it acquired the Valad Property Group, since renamed 151 Property, a decade ago.

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