ZACD Group has completed the acquisition of an office building in Melbourne, Australia for AUD27.325 million ($29.57 million). It is one of the largest office transactions in the outer Melbourne suburban office market in the past two years, according to ZACD This acquisition also marks ZACD’s first foray into the Australian real estate market.

The property is located in the heart of Cheltenham’s commercial precinct in the south-east of the Melbourne CBD. The 52,969 sq ft, three-storey office building sits on a land parcel of about 150,700 sq ft. It is currently leased to publicly-listed iSelect Limited.

According to ZACD Group, this asset will provide a stable income stream as it is fully leased out to a tenant with a proven track record. The net yield for the property is 8.8%, compared to the current yield for office properties in the Melbourne CBD at about 5% to 6%.