Garda sells final Melbourne office
Garda Property Group has sold its last Melbourne office as it seeks to become an industrial focused landlord.
The ASX-listed group is banking $24.1 million for 8-10 Cato Street, Hawthorn East, following an off-market campaign.
The result with Minsmere Pty Ltd, controlled by David Perry and Amy Tennant, director and vice president of Chartwell Industries and part of the philanthropic Cripps family, operators of the Cripps Foundation, reflects a small drop on the December, 2022, valuation: $25m, assuming a 5.75pc capitalisation rate.
It does however demonstrate an increase on the $20.1m Garda paid in December, 2021 (settling in March, 2022), before renovating.
The landlord moved that seller, occupier, Servier, to one of two Burnley offices in the process of selling to Sentinel Property Group for c$80m – about $30m less than the June 30 valuation.
Garda also sold a Box Hill office this year for $40.3m, a 14pc drop on book value.
JLL’s Tim Carr and Josh Rutman marketed 8-10 Cato St.
Following settlement before December 22, the buyer intends to part occupy (story continues below).
8-10 Cato Street
Completed in 2001, the Hawthorn East office contains 2419 sqm of offices over four floors, 908 sqm of warehousing and a two level basement with 105 car parks.
The offering also includes a 1124 parcel – presently configured with 31 car spaces – providing development upside.
About a third of the lettable area is rented.
“Net sale proceeds [will be used] to repay variable debt facilities to approximately $247m, providing $43m of headroom,” a spokesperson for the vendor said.
Hawthorn East is about seven kilometres south east of Melbourne’s CBD.
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