Growthpoint moves more industrial off books
Growthpoint has quietly sold its 15.1 per cent holding in the Dexus Industria REIT (DXI).
The $131.7 million deal – $2.75 per unit – will see pro forma gearing for this financial year drop 3.8pc to 36.9pc,
“The investment in DXI was no longer considered a core strategic investment and now is the appropriate time to realise the value,” chief executive officer and managing director, Ross Lees, said.
DXI absorbed the APN Industria REIT, which formed in 2013 with a focus on industrial, technology parks and business parks.
Shedding low yielding sheds
The Dexus Industria REIT deal was announced a day after Growthpoint agreed to sell an 80 per cent interest in six industrial investments via a joint venture with TPG Angelo Gordon – the Growthpoint Australia Logistics Partnership.
That deal will unlock another $181m net for the manager (story continues below).
It also connects Australian commercial real estate with the NASDAQ listed TPG.
Industrial yields, particularly in east coast capitals, still sit relatively lower than other sectors.
The disposals come two weeks since Growthpoint paid ISPT $90.1m for a Canberra office.
Reflecting a nine per cent yield, below replacement cost and only a few years ago valued at c$130m, it is earmarked for the Growthpoint Canberra Office Trust.
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