GDI Property Group has announced that it has entered in to a call option to acquire a $98.0 million portfolio of 17 metropolitan Perth properties occupied by high profile car dealerships and service centres located on major arterial roads.
The Portfolio is fully leased for a term of approximately 11 years, with the tenant having 5 x 5-year options. The leases have annual CPI + 1% rental increases, with market reviews in 2023 and 2028.
GDI intends to fund the acquisition through the establishment of a new unlisted unregistered managed investment scheme, GDI No. 46 Property Trust.
The Trust is forecast to have a commencing distribution yield of 7.75%p.a., with conservative gearing of 31%. GDI is expected to launch the approximately $76 million public raising for the Trust next week.
Settlement of the acquisition is anticipated on or around 17 January 2020. Steve Gillard, Managing Director of GDI, stated the Portfolio presents as an exciting opportunity to acquire a significant landholding in metropolitan Perth.
“With high underlying land value underpinning the Portfolio’s value, CPI + 1% rental increases, a long WALE and market leading car dealerships housing names such as Toyota, Volkswagen, Nissan, Hyundai and Kia, GDI is very pleased to be in a position to acquire the Portfolio. We believe the new fund that will acquire the Portfolio will be highly sought after by our high net worth and sophisticated investors and we look forward to launching the offering next week”, Mr Gillard stated.
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