GARDA Property Group has received independent valuations as at 1 April 2022 on nine buildings representing approximately 60% of its portfolio value, resulting in a $22.5 million increase in portfolio value to $603.3 million.
Further compression in capitalisation rates was the key factoring in the rise in values with the cap rates compression 25bps across most assets.
Net Tangible Assets has consequently increased by $0.14 to $1.86 per stapled security. GARDA’s closing price of $1.69 per security on 6 April 2022 represents a 9.1% discount to the revised NTA.
A summary of the 1 April 2022 independent valuations is provided below:
| Property | Sector | Value ($m) | Movement ($m) | Capitalisation Rate | Cap Rate Movement |
| Acacia Ridge, 69 Peterkin St | Industrial | 23.0 | 1.3 | 4.00% | (0.25)% |
| Berrinba, 1-9 Kellar St | Industrial | 14.0 | 0.8 | 4.50% | (0.25)% |
| Heathwood, 67 Noosa St | Industrial | 18.3 | 0.5 | 4.25% | (0.25)% |
| Morningside, 326 & 340 Thynne Rd | Industrial | 51.0 | 1.7 | 4.50% | (0.25)% |
| Pinkenba, 70-82 Main Beach Rd | Industrial | 34.0 | 2.0 | 4.50% | (0.25)% |
| Wacol, 41 Bivouac Pl | Industrial | 61.5 | 4.0 | 4.00% | (0.25)% |
| Wacol, Pinnacle West (Bldg C) | Industrial | 14.9 | 1.0 | 4.25% | (0.25)% |
| Wacol, Pinnacle West (land)2 | Industrial Land | 10.5 | 0.2 | na | na |
| Richmond, 572-576 Swan St (Bot 7) | Office | 63.5 | 5.0 | 5.00% | (0.25)% |
| Richmond, 588A Swan St (Bot 9) | Office | 68.5 | 6.0 | 5.00% | (0.25)% |
| 359.2 | 22.5 |
Following the independent valuations, GARDA’s gearing is at 37.1% and its weighted average capitalisation rate has compressed 15 basis points to 5.12%.
Four other GARDA properties are expected to be independently valued before 30 June 2022:
- the 32ha North Lakes industrial development site will be valued “as is” upon receipt of its development application approval;
- GARDA’s planned 15,500m² prime industrial building at 38 and 56 Peterkin Street, Acacia Ridge will be valued on both an “as is” basis and an “as if complete” basis upon the imminent demolition of existing buildings at the site; and
- the industrial development site at Richlands will be valued on both an “as is” basis and on an “as if complete” basis immediately prior to expected commencement of development activity.
- The industrial development site at Wacol (Pinnacle East) will be valued on an “as is” basis upon receipt of its development application approval.
The only established properties not to be independently valued in this cycle were Box Hill, Cairns, Hawthorn and Mackay.
Related Articles
