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GARDA PROPERTY GROUP — Capital/Financing Update 2018
Mar 28, 2018
64972_rns_2018-03-28_31a62981-e570-4517-8938-50db3f8ba83c.pdf
Capital/Financing Update
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ASX Announcement / Media Release
GARDA Diversified Property Fund (GDF)
29 March 2018
Acquisition – 67 Noosa Street, Heathwood (QLD)
GARDA Capital Limited ( GARDA ) as responsible entity of GARDA Diversified Property Fund ( GDF ) is pleased to announce it has exchanged unconditional contracts to acquire an industrial facility in Heathwood, located approximately 30 kilometres (by road) southwest of the Brisbane CBD.
The property will be acquired for $9.8 million, representing an initial yield of 7.4% with a 10 year triple net lease in place to James Engineering. The building is approximately nine (9) years old.
The property at 67 Noosa Street, Heathwood, consists of approximately 6,022m² of building with a low 40% site coverage, providing a generous portion of hardstand across the 15,094m² site.
Heathwood is one the Brisbane’s most successful industrial estates, having a prime location along the Logan Motorway, where immediate access can be gained to major transport routes including the Centenary Highway (West), Mt Lindsay Highway (East), Gateway Motorway (East) and the Ipswich Motorway (North).
James Engineering has operated since 1964 and produces pre-fabricated and transportable electrical and data switch rooms.
Settlement of the acquisition is expected to occur not later than 26 April 2018, and will initially be funded with available working cash and debt facilities, with LVR remaining at approximately 27%.
GARDA’s Executive Chairman Matthew Madsen said “we are pleased to have acquired an industrial facility of this quality that provides further tenant diversification with a long term triple net lease in place. The off market sale and lease back nature of this transaction demonstrates the ability of GARDA to identify and procure assets at good value in the current market”.
The acquisition has improved weighted average lease expiry (WALE by income) to 5.5 years from 5.3 years at 1 April 2018, with occupancy remaining at 97%. The portfolio is now weighted 67% commercial and 33% industrial by value.
GARDA reiterates FY2018 full year guidance of 9.00 cents per unit and intends to provide FY2019 distribution guidance following the release of GDF’s annual financial report in August 2018.
-Ends-
Level 21, 12 Creek Street, Brisbane QLD 4000[| ] GPO Box 5270, Brisbane QLD 4001 P. (07) 3002 5300[|] F. (07) 3002 5311[|] [email protected]
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For more information please contact:
Matthew Madsen Paul Brown Executive Chairman Manager, Investor Relations GARDA Capital Group GARDA Capital Group Phone: 07 3002 5300 Phone: 07 3002 5362 [email protected] [email protected]
About GARDA Diversified Property Fund (ARSN 104 391 273)
GDF is an ASX listed real estate investment trust (REIT) which invests in commercial offices and industrial facilities along the eastern seaboard of Australia.
GDF currently holds eleven assets, three of which are under construction, including current unconditional contract acquisitions. GDF’s property portfolio is independently valued at $305 million.
About GARDA Capital Limited
GARDA Capital Group is an ASX listed (ASX: GCM) real estate investment and funds management group. The GARDA Capital Group is co-invested in GDF holding a 13.5% stake.
GARDA Capital Limited is the responsible entity of GDF, is a member of the GARDA Capital Group and holds AFSL 246714 which permits it to act as the responsible entity for GDF.
Level 21, 12 Creek Street, Brisbane QLD 4000[| ] GPO Box 5270, Brisbane QLD 4001 P. (07) 3002 5300[|] F. (07) 3002 5311[|] [email protected]