Australian Unity's Property Income Fund has bought an $8 million commercial building in Port Adelaide, South Australia as it manages increasing inflows from investors.
Its latest acquisition is an office building at 296 St Vincent Street in Port Adelaide, 12 kilometres from the Adelaide CBD. The two-storey building has a net lettable area of 3537 square metres. The initial passing yield on the acquisition is 9.25 per cent. 
The property is fully leased with a weighted average lease expiry of 2.5 years. Its tenants include Flinders Ports, China Shipping, South Australian Housing Trust and Community Bridging Services.
The $112 million PIF fund was established in 1999. Its portfolio comprises a mix of direct assets, unlisted funds and listed property securities.
Alex Fisher, its portfolio manager, said PIF was currently paying a distribution yield of more than 6 per cent, generated from income from property rental yield. By contrast, he noted, government bonds are at 2 per cent.
"PIF also offers a daily liquidity facility and doesn't have any debt, which provides investors with additional comfort," he said.
"This acquisition is in line with the long-term strategy to grow and diversify the fund through acquisition of new assets, as well as improving existing properties.
"With Australian commercial property markets offering higher comparative yields than other international property markets, we believe strong demand from overseas investors for local commercial property is set to continue, providing ongoing support for valuations."
Australian Unity has been busy in the commercial property sector this year, fulfilling long-held plans to float its Australian Unity Office Fund.
The new trust has a $391 million portfolio of eight assets in Sydney, Adelaide, Melbourne, Brisbane and Canberra.
The Australian Unity Healthcare Property Trust has also been active, buying two pathology laboratories in Melbourne and Perth through an $81 million deal from Sonic Healthcare.