Garda Capital has today confirmed the settlement of a 32-hectare development site at North Lakes which will seek to develop into a master planned industrial estate.
The North Lakes site is located at 109-135 Boundary Road, approximately one kilometre east of the Bruce Highway / Boundary Road interchange.
The purchase price for the asset was struck at $16.0m however the Fund has since had it independently valued at $20.0m, representing an unrealised gain on acquisition of $4.0 million or 25% of the purchase price.
Garda’s intention is to create a master planned business industrial park including dedicated precincts that support the development of premises for small, medium, and large customers. Garda anticipated that it will take approximately 12 months to finalise town planning and relevant approvals and a further 12 months to complete bulk earth works and initial civil works. On completion of these works and allocations for internal roads and green space, the site will provide 22.4 hectares of net developable industrial land, delivery a potential 98,000m² of built form GFA.
Garda capital also recently secured sites in Progress Road, Wacol for $7.2 million delivering possible built form pipeline GFA of approximately 17,000m², and Bandara Street, Richlands for $6.8 million delivering possible built
form GFA of approximately 13,000m². Combined, the acquisitions will add 128,000m2 of possible built form GFA, trebling Garda’s existing industrial development pipeline of 44,309m2.
Garda’s Executive Chairman, Matthew Madsen, said “following settlement of these acquisitions, 52 percent of Garda’s property portfolio by value will comprise high quality industrial properties in attractive locations. This proportion will increase as our 172,000m² industrial pipeline is built out”.
Following the recent acquisitions and valuations, industrial properties now represent approximately half of the Garda portfolio by value. This proportion will increase as sites at Acacia Ridge, North Lakes, Richlands, and Wacol are developed pursuant to Garda’s “develop to own” strategy.
Successful leasing outcomes at Berrinba, Botanicca 9, Cairns and Wacol have underpinned proforma WALE (by income) at 30 June 2021 of 5.4 years and occupancy of 89%.
Last month, Garda announced a 21% increase in proforma Net Tangible Assets to $1.45 per stapled security following the independent valuation of eight investment properties and the previously disclosed sales of three non-core properties. The revaluations indicated a WACR of 5.78%, with the WACR for commercial office buildings being 5.96% and for industrial buildings being 5.56%.
Today, Garda also released their preliminary results for FY21 with unaudited Funds from Operations (FFO) of 7.7 cents per security, providing an expected total distribution of 7.2 cents per security, reflecting a payout ratio of 93% compared to the forecast of 95-100% for FY21 and 104.5% GARDA delivered in FY20.
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