Garda sells IOS investment after unexpected vacancy
Garda Property Group has agreed to sell a major Brisbane industrial site, with almost all proceeds to repay debt.
The 4.05 hectare Pinkenba property, 70-82 Main Beach Road, traded for $33.25 million to a private buyer, with settlement scheduled January, subject to the buyer completing due diligence.
It was on the books at $34m when listed in August.
Garda paid $19m in 2017 with a 15-year lease to a Byrne Group subsidiary, Pinkenba Operations, which used it as a resource recovery centre.
As part of that deal, the landlord developed a c2635 square metre warehouse.
Pinkenba is about 10 kilometres north-east of Brisbane’s CBD.
Unexpected vacancy
Last August, Pinkenba Operations entered administration. In April it was placed into liquidation.
Garda said the lease remained under the control of receivers and rent continued to be paid (continues below).
That said, the property was listed for direct-lease, either in its entirety or as two parcels, each 2.025ha.
It was then offered for sale vacant targeting Industrial Outdoor Storage occupiers and investors.
CG Property Groups Dan Munnich and Michael Callow were the agents.
Almost all proceeds – $32.9m – will be put on debt.
Upon settlement, Garda’s borrowing is expected to fall to about $143.1m.
Gearing should drop to c26.7 per cent.
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