GARDA Property Group advised the market this week that it has refinanced its senior bank facilities, providing it with additional headroom and a lower cost of capital.
GARDA has opened two new facilities totalling $200.0 million with its incumbent lenders. ANZ Banking Group and St. George Bank.
The new facilities, which provide GARDA with an additional $19.3 million of borrowing capacity, will operate under a common terms structure and have a tenor of three years. When fully drawn. GARDA's anticipated "all in" cost of debt will be approximately 3.0%.
Mr Matthew Madsen, GARDA Executive Chairman said "the restructure of GARDA's senior debt demonstrates the strong financial support for the existing quality property portfolio and GARDA's build-to-own strategy. The increased limit provides ample headroom to complete the $26.0 million in committed projects at Berrinba (5.500 m2 ) . Wacol (5.20 4m2 ) and Acacia Ridge (12.000m2 ) that have either recently commenced. or are due to commence shortly."
GARDA's debt facilities continue to be hedged by a $60.0 million interest rate swap contract at a rate of 2.68% expiring in July 2022. GARDA is assessing various options to extend or reset this hedge given the current low interest rate environment.
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