Garda sells down portfolio to focus on lending
Charter Hall is set to acquire six Brisbane industrial properties for $300 million.
The seller is Garda Property Group which is preparing to exit direct property ownership and redirect capital towards lending.
The unconditional contracts cover investments across Acacia Ridge, Berrinba (pictured, top), Richlands, Wacol and Morningside, with settlement of most properties scheduled for November 20.
The portfolio comprises 90,600 square metres of lettable space and includes facilities leased to Volvo, O’Brien Glass, CNW and Ausdeck.
The assets have a weighted average lease expiry of 4.5 years and average annual rent increases of 3.4 per cent.
Passing rents are below assessed market rents, the buyer said.
Garda sheds seven assets
The Charter Hall deal forms part of Garda’s sale of all nine investment properties, with total gross proceeds expected to reach $350.8 million.
Garda has separately contracted to sell a seventh property – in Heathwood, to The Landrich Trust. for $17.5m, with settlement scheduled for November 20.
Last month realestatesource.com.au reported it offloaded a 4.05 hectare Pinkenba property to 2MB Co for $33.25 million, with settlement due on January 22, 2027.
The Charter Hall assets comprise two properties at Acacia Ridge, at 38 Peterkin and 69 Peterkin streets, trading for a combined $68.5 million; Berrinba for $17.1m; Richlands for $37.9m; Volvo’s Wacol facility ($51.8m); Pinnacle West at Wacol ($44m); and Morningside ($80.7m).
The Morningside contract remains subject to due diligence, with settlement expected around March 2027.
Garda valued its nine-property industrial portfolio at $340.6m at June 30, 2026.
From property to lending
The sales will allow Garda to repay its syndicated debt facility, which was drawn to $185.3m at the latest reporting date (continues below).
The company expects to repay about $186m after adjustments.
Following settlement of all nine properties, Garda anticipates $176.6m in surplus cash available for investment and total investable capital of about $321m including $144.4m in existing loan receivables.
The group intends to direct surplus capital towards lending activities for the foreseeable future, while retaining the ability to own or develop property.
The shift has prompted Garda to lift its FY27 funds from operations guidance by 19 per cent, from 10.5 cents to 12.5c per security.
Distribution guidance increased 39pc, from 9c to 12.5c per security.
Garda intends to distribute substantially all funds from operations.
It is targeting a payout ratio of about 100pc.
Charter Hall builds Brisbane exposure
The acquisition follows Charter Hall’s September purchase of three South East Queensland industrial assets for $192.4m, including facilities leased to Australia Post, automotive logistics operator PrixCar and healthcare distributor Symbion.
Charter Hall Industrial & Logistics chief executive Richard Stacker said the latest acquisition would increase the platform’s exposure to established Brisbane industrial precincts.
Charter Hall chief executive David Harrison added the deals would contribute to the group’s Queensland property funds under management reaching about $15 billion.
The group’s Industrial & Logistics platform is valued at $24.9b.
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