GDI banks $164m from Perth IKEA
GDI has sold Perth’s only IKEA, at Innaloo, after just over seven years.
The ASX-listed group, which held the asset, 6 Sunray Drive, in the unlisted GDI No 43 Property Trust 2, is finishing in the black from the disposal – reaping $163.75 million after paying $143.5m.
The incoming owner is as yet undisclosed; settlement was subject to the removal of a caveat and easement and obtaining waivers and acknowledgements from the City of Stirling and Western Australian Planning Commission.
These are in the process of being documented and actioned, the seller said.
IKEA Innaloo
Built in 2008, the Innaloo asset contains 2933 square metres over four floors, the bulk occupied by IKEA for a store and 400 seat restaurant.
The Swedish giant is on a lease expiring in 2026 with a five year option.
Four peripheral retail units are separately leased.
There are also 1000 car parks (story continues below).
“We identified that the caveat and the easement, which have now been removed, and the agreements with the Council and the Planning Commission were an impediment to the long-term tenure opportunity of the site,” GDI managing director and chief executive officer, Stephen Burns, said.
“We have been working with Council for several years to have these removed, and having Council approval to their removal has enabled us to crystallise the value uplift in the property since the acquisition,” he added.
“The sale also delivers on our strategy of releasing capital to our unlisted fund investors,” according to the executive.
Unitholders are expected to be delivered a circa nine per cent internal rate of return.
“GDI does not hold any units in the trust but will receive a disposal fee in due course,” Mr Burns said.
Innaloo is about 10 kilometres north west of Perth’s CBD.
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