Garda quietly sells significant industrial asset
Garda Property Group has sold an industrial investment worth 22 per cent of its local portfolio.
The funds through deal for the North Lakes business park (artist’s impression, top) with an ESR managed fund is worth $114 million – a touch lower than the recently completed valuation of the built-out project ($116.8m).
That said, it still reflects a windfall for Garda which outlaid $16m for the 25 hectare land making way for the site in June, 2021.
Another $11.2m is being spent on infrastructure works.
Following settlement – which needs Foreign Investment Review Board approval with the parties expecting any settlement at least five months from now – Garda will repay all variable debt and reduce its gearing from 36pc to 22pc.
The deal comes after a more devastating in Melbourne’s Burnley earlier this year – where nearby offices in the Botanicca business park traded for a dramatic discount to book value and previous campaign asking prices.
North Lakes
North Lakes will contain c100,000 sqm of net lettable area.
“When fully developed…it will be one of Queensland’s leading industrial estates an we are disappointed not to be developing it out,” managing director, Matthew Madsen, said (story continues below).
However he added “the scale…is simply too large for Garda to deliver in the current environment”.
“This transaction places Garda into a strong financial position…our owners should benefit from any improvement in the property markets or broader economic conditions and we also have scope to be opportunistic in the event of continued weakness” according to the executive.
The manager will wear capital gains tax on the deal.
Unitholders will receive a one-off special distribution following it.
In the Moreton Bay region, North Lakes is about 26 kilometres north of Brisbane’s CBD.
Also today we are reporting Fife Capital and Gibb Group secured Sydney industrial investments for a total $86.5m.
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