Garda sells trophy Cairns office
Garda Property Group has nearly completed the sale of a trophy North Queensland office.
The deal for the Cairns Corporate Tower at 7-19 Lake Street, though known as #15, with Haplin Property, is worth $77.5 million.
Though a small premium to the most recent independent valuation – $77.4m – it falls short of the $90m appraisal in October, 2021.
Two years ago, it was priced at $82.5m.
It previously traded in 2006 for $41.5m.
Cairns Corporate Tower
Haplin is buying the Cairns CBD office on an 8.9 per cent net passing yield.
On 4500 square metres, with a large portion as open-air parking, the 15 level building contains 14,844 sqm rated A-grade.
ANZ, ARUP, BDO North Queensland, GHD Services, Grant Thornton Australia, the Department of Transport and Main Roads, Morgans and Suncorp are amongst the major occupiers.
The NABERS rating is 5.5-stars.
There are 264 car parks including in a four storey podium.
Garda quits office
CBRE’s Mark Witheriff and Danny Betros marketed the office via a Price Placement campaign.
With the deal, Garda has quit office, the sale coming nearly two years since it shed it last Melbourne asset of this type in East Hawtorn and Burnley – the latter to Sentinel Property Group.
“The purchaser has until 19th August to exercise the call option triggering settlement by 19 September, 2025,” a Garda statement said.
“Garda will use the net sale proceeds to reduce its drawn debt,” it added.
The sale comes nine months since Garda sold a North Lakes industrial asset to ESR on a funds through basis for $114m.
“In a combination with the net sale proceeds from North Lakes, also expected in September 2025, Garda’s drawn debt reduces by approximately $191m to $79m, representing gearing of 14.7pc,” the statement said following the Lake St sale.
“The exercise of the call option and successful divestment will concentrate Garda’s property ownership to Brisbane industrial,” it added.
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