Company news: 360 Capital Office Fund
The 360 Capital Office Fund (TOF) sold its Allara Street property in Canberra for $29.0m, $1.0m less than the book value. We consider this to be a good development as the property had significant leasing risk and capital spend requirements. Proceeds will be used to reduce debt (gearing will stand at a conservative 18.7%), so the fund has the capacity to make acquisitions should appropriate opportunities arise. We expect to see the dividend level lift (to match earnings) as a result of this divestment in due course.