Garda Capital has sold three Queensland assets, pre-committed two new clients and is about to call in valuers to reprice two thirds of its portfolio.
In an optimistic market update, the Brisbane developer, investor and manager, added a key factory tenant which was recently bought out and is now managed by Alceon Group, won’t break its lease expiring in 2033.
Eleven per cent of the lettable area in the landlord’s $430.5 million portfolio is vacant.
Garda owns 12 industrial properties – representing 53 per cent of the total value.
Five offices make the balance.
It only invests on Australia’s east coast.
The portfolio’s Weighted Average Lease Expiry is 5.5 years.
Disposals worth $30.6m
Garda today announced it sold two Brisbane warehouses.
The priciest, at 142-150 Benjamin Place in north east Lytton, is trading for $11m.
This deal reflects a 26.1pc premium to book value but is conditional on the vendor completing some works prior to settlement next month.
Across town the sale of a 4524 sqm Archerfield property on 1.5 hectares at 839 Beaudesert Road will be finalised next week, the group said.
The price, $7m, is 12.9pc over its last valuation.
In a third disposal, a contemporary Varsity Lakes office, Aspect, is collecting $12.6m – five per cent more than its last assessment – in a deal due to settle in four weeks.
At 154 Varsity Parade (pictured, top), this asset is about 11 kilometres south of Surfers Paradise.
Sale proceeds will repay debt.
Garda added some would also be put to its development pipeline (story continues below).
In Wacol, south west of Brisbane, the landlord has pre-committed YHI Australia to a 6000 sqm facility.
The tenant will pay starting gross annual rent of $700,000 upon completion next month.
The lease term is just over 10 years.
In Acacia Ridge – 12 km away – Garda will start construction of a 6200 sqm warehouse pre-committed for seven years to Austrans.
The gross annualised rent upon completion of the $7.6m building works, starts at $800,000.
The landlord added this holding has room for another 6000 sqm asset.
In January, Garda secured Japan’s FujiXerox to 2400 sqm of its 588A Swan St, Burnley office – in Melbourne – for an initial seven years.
Today it said another 365 sqm of the ground floor area has been rented to US-based NuVasive for five years.
Now just the top three storeys – representing 54pc of the asset’s lettable area (by revenue) – are left to fill.
In Berrinba, south of Brisbane, an Australian subsidiary of a multinational group has entered heads of agreement for 2726 sqm at 1-9 Kellar St.
This lease would kick in four months from now then run five years.
The space forms part of a 5,690 sqm office/warehouse Garda built speculatively and completed late last year; two other tenants, including Boral USG, had previously signed up.
Garda said that Pinkenba Tenant Acquisition intends to stay on at a Pinkenba warehouse for the remainder of its 12 year agreement.
Two thirds of its portfolio will be valued in coming months, it added.