In a move to reduce debt, Growthpoint Properties has sold two of its Queensland assets.
In a move to pay down debt and reduce gearing, Growthpoint Properties has sold two of its Queensland assets, an office tower in Nundah and an industrial asset in Yatala. Growthpoint Properties Australia is a real estate investment trust which was listed on the Australian Securities Exchange in 2007. It has a stapled entity structure with the majority of securites held by Growthpoint Properties Ltd of South Africa. Growthpoint Properties Ltd is listed on the Johannesburg stock exchange and is based at Sandton, South Africa.
Their Nundah office tower at 1231-1241 Sandgate Road has been sold to Centuria Property Funds. Centuria was formed in 1999 to facilitate the purchase of investment property on behalf of a limited number of private clients. They currently own and manage a portfolio of properties with a combined value of approximately $1.5 billion.
The Nundah asset comprises 12,980 sqm over eight levels with ground floor retail and two levels of basement car parking for 144 cars. It was built in 2012 and has a 5 star Green Star rating and a 4.5 star NABERS rating. It is fully leased to Energex, Powerlink and various retailers and is ideally located only 8 km from the Brisbane CBD. The building last traded at $77.9 million and this sale, at $106.25 million, was at an initial yield of 6.9%.
Growthpoint has also sold an industrial asset at 29 Business Street, Yatala for $10.65 million. Located within the Access Business Park the property consists of 8,264 sqm of warehouse space and 417 sqm of office and amenity space on a 16,460 sqm site. It was leased to CMC Steel, returning over $1 million a year.