generic light industrial zone commercial precinct
Image – Canva.
  • Asset divestment sees $30.6M in sales
  • Three properties saw premiums of 26%, 12% and 5%
  • Pro-forma NTA now $1.215 per security following divestment

GARDA Diversified Property Fund (ASX: GDF) recently saw three properties, or what the company stated as “non-core assets” leave its hands for a total of $30.6 million.

The sale represents a healthy return for the company, with each property fetching a premium on the sale, some more than others.

In its asset divestment, GARDA said the Archerfield property “is now unconditional for $7 million, representing a 12.9% premium to its independent valuation.” The company said its Lytton property “is under contract for $11 million, representing a 26.1% premium”, and that it is likely to be settled by May this year. The Varsity Lakes property is also unconditional at $12.6 million, but only seeing a 5% premium on its valuation.

The asset divestment is expected to “initially be directed to debt reduction but will ultimately be utilised for the industrial development pipeline.”

GARDA said the funding will be directed towards a Wacol development, as well as the first stage of 69 Peterkin Street, Acacia Ridge.

Currently “pre-committed to YHI Australia for a lease term of 10 years and 5 months”, the Wacol facility totals 6,000 square metres and is expected to generate an annual gross income of $700,000.

The Acacia Ridge property is slightly larger at 6,200 square metres and is expected to provide GARDA with $800,000 per annum in gross income. Construction costs are expected to be $7.6 million.

GARDA said pro-forma net tangible assets after the divestments are $1.215 per security, and occupancies have increased to 89%.

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